The 2016 Fort McMurray fire was “the costliest insured event in Canadian history”, as reported by the Insurance Bureau of Canada. Damages were estimated at $3.6 billion, and approximately 60,000 claims were filed.
These are some pretty staggering numbers, and thankfully the majority of these claims have now been settled. But the numbers don’t tell us what it may have been like to be out of one’s home for many months or longer, and going through the home insurance settlement process.
In 2019, Macleans wrote an investigative report on the aftermath of the fire, focusing on challenges that many residents faced in settling their home insurance claims. The report is eye-opening: Long after the fire, Fort McMurray residents are still battling insurance companies - Macleans.ca
Of the unsettled disputes that were described, many were reported to relate to secondary effects of the fire and the measures taken to fight the fire. For example, one couple believes that the foundation of their home was affected by the intense water bombing that took place to contain the fire. Another resident is pursuing a claim to remediate the black mold that developed in her home due to the heat of the fire that damaged her window seals. Another reported that the superficial cleaning of her home of smoke damage, didn’t address the smoke effects on the structural interior of the home, which only became apparent after many months of living in the home again.
One resident reported to Macleans that “The insurance battles felt like a full-time job.”
It’s not hard to imagine the stress a claimant would be under when uprooted from their home, contemplating the magnitude of their loss, and entering what could be a lengthy settlement process. In the June WAS newsletter, we provided some suggestions for reviewing your home insurance policy, to make sure your coverage is adequate in case of wildfire (https://www.wildfireawareness.org/post/june-28-is-national-insurance-awareness-day). Taking some steps to understand what your policy does and does not cover, and documenting the value of your property and belongings, will help mitigate stressful and costly disputes.
Here are some other things about the settlement process to be aware of:
You may not have a copy of your insurance policy before making a claim. Many insurers only provide a ‘summary of coverage’. Request a certified copy of your insurance policy
Before or after you submit a claim, document discussions you’ve had with your insurer and confirm details by email
Resist the temptation to settle quickly and get independent verification of your insurer’s estimate of loss
Make sure the information you provide to your insurer is 100% accurate. Providing incorrect information, even mistakenly, could expose you to rejection of your claim based on fraud
Question estimates for repair vs. replacement. Get independent verification
Be professional in all communications with your insurer. The process may be complex, time-consuming and overwhelming. Your interests will be best served in the long run if you are calm, rationale and meticulous when participating in the process
Consult a lawyer if you sense intimidation or manipulation is being used as a tactic to coerce you into settling your claim quickly
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