Canada’s home, auto, and business insurers have had a very busy summer due to four major weather events and natural disasters this summer. The flooding in Toronto and southern Ontario, the Jasper wildfire, the Calgary hailstorm, and flooding in regions of Quebec have led to approximately 228,000 insurance claims. This marks a significant increase compared to 2023, which saw 113,000 claims in July and August and 160,000 claims for the entire year.
Alberta has the dubious distinction of taking two of the top four spots. Initial estimates from Catastrophe Indices and Quantification Inc. indicate that insured losses from the Jasper wildfire have exceeded $880 million. The wildfire, which erupted suddenly on July 22, caused severe damage, destroying or damaging about one-third of the community. According to the Insurance Bureau of Canada (IBC) on Aug. 27, the Jasper wildfire has become Alberta’s second most expensive wildfire in terms of insured losses, after Fort McMurray in 2016, which resulted in $4.4 billion in insured damages.
The Aug. 5 hailstorm has set an “unprecendented record” according to the IBC in a Calgary Herald article. Insured losses from damage including shredded siding, smashed windows, battered rooftops and dented vehicles across north Calgary have now totalled $2.8 billion.
Celyeste Power, president and CEO of the IBC, warns that the sheer volume of claims is slowing down processing.
“These four catastrophic weather events, which occurred over the span of four weeks this summer, have resulted in more claims in one summer than insurers have reported in any summer over the last 20 years. While insurers continue to assist their customers with financial support, the sheer volume of claims, coupled with skilled labour shortages and continued strains in Canada’s supply chain, means that the claims process will take time,” Power said.
That means that while Canadians deal with the fallout of extreme weather events that have damaged their homes, vehicles, and businesses, they will also have to wait longer than usual for their claims to be finalized. This can make a bad situation even worse for the people involved.
What to do about a delayed insurance claim?
While waiting for your home, business, or auto insurance claims to be processed, there are a few steps you can take to help make things go a little faster. These should help protect your interests and prepare you for the next steps.
Don’t finalize too soon for home and business claims
Although you have already had to document everything from your insured incident to your business or home provider (whether it be fire or hail damage, or even something else), you should continue to keep track of all your expenses until everything is completely finished. For example, most business and home insurance policies allow you to keep adding costs up to a year after filing, which helps account for construction delays, missing or damaged items that you didn’t notice at first, and so on. In many cases your insurance company will be able to provide interim funds to help pay the bills in the meantime.
Stay in contact with your insurance adjuster
It should go without saying, but maintaining regular communication with your insurance adjuster or claims representative is your best bet for a fast resolution. Ensure they have all the information they need and ask for regular updates on the status of your claim. It is also helpful to get a clear understanding of the timeline for processing and any potential issues that could cause delays.
Make temporary repairs
If it is safe to do so, make temporary repairs to prevent further damage to your home, business, or vehicle. Keep receipts for any expenses incurred, as these may be reimbursable under your policy. However, avoid making permanent repairs until your chosen repair company has fully assessed the damage and provided their advice. Remember, too, that you are always allowed to go with a repair company that you know and trust above your insurance company’s recommendation.
Claims dispute tips for a fast resolution
If your insurance company is disputing your claim, the first thing to do is to read through your policy as carefully as possible so you are fully aware of your rights as well as the responsibilities of your insurance provider. Feel free to contact us for the clarification of any technical wording you don’t understand. If you believe that your insurance provider is not providing protection as set out through your contract, we recommend you follow these steps:
- Get as much information as possible from your insurer about why they are challenging your claim. There may be a simple misunderstanding that can be easily rectified.
- If that doesn’t work, ask to speak with your insurer’s claims manager. This is the person who most likely made the decision on the outcome of your claim.
- If your claim is still not being processed to your satisfaction, all insurance companies have what is called a Complaints Liaison Officer or Ombudsperson. This person’s role is to ensure the dispute resolution process is being properly adhered to. When speaking to the Complaints Liaison Officer or Ombudsperson, clearly state your concern and present all the pertinent information. Be sure to keep track of all communication, including who you talked to and what they said.
- If you have still not managed to reach a desirable outcome after speaking with the Complaints Liaison Officer or Ombudsperson, ask for a final position letter and contact the national General Insurance OmbudService, which is meant to be fair, impartial, and independent.
Additional resources
Each province has its own claims dispute process for those who feel they have been treated unfairly by their insurance company. In Alberta, the Dispute Resolution Process is clearly set out in section 519 of the Insurance Act. You may register your insurance company complaints with the Alberta Government’s Insurance Consumer Complaints department.
Trust Lane’s for all your Alberta insurance needs
If you are having difficulty with your claim, take the time to review your insurance policy carefully. Or, better yet, engage one of the experienced brokers here at Lane’s Insurance to help you better understand your coverage limits, deductibles, and any exclusions that may be affecting your claim. Then allow us to help you find your options.
Lane’s Insurance is a Calgary-based brokerage serving Albertans with very high rates of customer satisfaction. If you’re unhappy with your current insurance company, or if you’re interested in getting a free, no-obligation quote for a comprehensive range of insurance products, please contact a Lane’s Insurance representative to arrange a consultation.
