FAQs What des my insurance cver? Virtually every hme insurance plicy cvers damage caused by fire, even if the fire began n a neighburing prperty, as lng as the fire was nt started intentinally by the insured. Damage t vehicles frm fire is usually cvered if cmprehensive r all perils aut insurance has been purchased. This cverage is nt mandatry, s check yur plicy. What will this event cst? Even thugh there is speculatin abut the high level f claims that will result frm this incident, it is imprtant t nte that it is t early fr us t be able t estimate the damage until we have actual numbers frm insurers. We d believe, hwever, that lsses will be mre than fr the Slave Lake fire. I dn t knw wh my insurer is. Hw can I find ut? If yu prvide IBC with yur name, address and cntact infrmatin, we can send that t insurance cmpanies and brkers. They ll search their files t see if yu have a plicy with them. Once yur insurer finds yur plicy, they will cntact yu. Yu ll just need t sign a cnsent frm t acknwledge that yu ve given IBC yur persnal infrmatin and that we will nt share it r keep it fr any ther purpse. What are additinal living expenses? Fr residents wh were frced t leave their hmes because f a mandatry evacuatin rder issued by civil authrities, mst hmewner s and tenant s insurance plicies prvide cverage fr reasnable additinal living expenses fr a specified perid f time r up t a maximum dllar amunt. This may als include fair rental value, which cvers a landlrd s lst rental incme if tenants cannt ccupy a prperty due t insured damage. Yu shuld speak with yur insurance representative, wh is at the ready t clarify the details f yur plicies, t get answers specific t yur cverage. Will I be cvered fr the spiled fd in my fridge and freezer? Typically, a hmewner s plicy ffers a specified cverage limit fr freezer fd, but nt cverage fr refrigerated fd. Will a landlrd s plicy cver uninsured tenants? N. A landlrd insures nly the building and appliances. The persnal prperty f tenants is theirs t insure n their wn. Page 1 f 5
I thught acts f Gd were excluded frm insurance plicies? Cntrary t ppular belief, there is n such thing as an act f Gd exclusin in any prperty insurance plicy in Canada. In fact, insurers rutinely pay fr damage resulting frm natural disasters, including windstrms, rain, hail r wildfire. I ve heard my claim may be denied if I dn t file right away. Is this true? N. The bttm line is that this is nt true. There is misinfrmatin circulating that if yu dn't get yur claim in immediately, yu are nt ging t be cvered. Obviusly it is imprtant t get the claims prcess started early, but yu will abslutely be cvered. Always keep receipts and cntact yur insurer as sn as yu can. The additinal living expenses (such as accmmdatin, fd, laundry) fr which yu are cvered start frm the date f evacuatin. Hw d I file a claim? If yu knw wh yur brker is, cntact them. Otherwise, call yur insurance cmpany. What d I d nw? 1. Make sure t keep receipts fr all f yur living expenses since the evacuatin ntice. Yu can claim reimbursement fr these. 2. When yu speak t yur insurance representative, ask them what living expenses yu're entitled t reimbursement fr, and fr what perid f time. 3. If pssible, assemble any dcumentatin related t yur prperty and belngings (prfs f purchase, phts, receipts and warranties) t share with yur insurer. 4. Yu ll be assigned an adjuster, wh will wrk with yu t assess the extent f any damage. What happens when I file a claim? Once yu have reprted a lss, yu will be assigned a claims adjuster. This culd take sme time, given the sheer number f claims. Rest assured that yu will be cntacted. Making sure yur insurance representative has yur email address and cellphne number will help them reach yu. The claims adjuster will investigate the circumstances f the lss, examine the dcuments yu prvide and explain the claims prcess. Take ntes during these cnversatins and dn't be afraid t ask questins. Yur insurance cmpany will ask yu t cmplete a Prf f Lss frm t list the prperty and/r items that have been damaged r destryed, alng with the crrespnding value r cst f the damage r lss. Yu must sign and swear that the statements yu make n the Prf f Lss are true. Ask yur insurance representative r claims adjuster t clarify anything yu are unsure abut. Page 2 f 5
Can I d sme f my wn cleanup? When cleaning up after fire damage, yu shuld nt enter yur hme until emergency fficials say it is safe t d s. Dn t turn n any electrical switches until the electrical system has been checked. Once authrities say it is safe t begin cleanup effrts, yu must take all the prper precautins t prtect yurself. Yur adjuster may advise that yu use a prfessinal cleaning service, depending n the extent f the damage. What shuld I be cncerned abut? In a rapidly changing envirnment, there will be misinfrmatin. Always get in tuch with yur insurance representative if yu have cncerns, r check with IBC s Cnsumer Infrmatin Centre. Beware f peple with dishnest intentins. These peple will ften use a disaster r tragedy t take advantage f thers. Dn t agree t any repair wrk until yu have spken with yur insurance adjuster. Hw much will I be cvered fr? Yur cverage depends n what yu have in yur plicy. Check with yur insurance representative. Typically, a hmewner s plicy ffers replacement cst cverage up t the limit n the plicy r, if a plicy is fr guaranteed replacement cst cverage, the insurer pays whatever it csts t repair r replace yur prperty even if it exceeds the plicy limits, if the hme is rebuilt. Mst plicies cntain a same site requirement that the hme must be rebuilt where it was. What if I dn t rebuild n the same site? Typically, if the hme is nt rebuilt n the site where it was befre the lss, yur plicy wuld cver yu fr yur hme s actual cash value (depreciated value). What abut the value f the land? Yur plicy insures yur hme, ther structures and persnal prperty, such as furniture and electrnics (plus any extensins and persnal liability). It des nt insure the land. If yu decide t take a cash settlement, yu still wn the land and wuld have t sell it if yu n lnger want it. Hw d they calculate my claim? The amunt f hme insurance is based n the replacement cst f the hme and nt n its market value. If yu have replacement cst cverage, the insurer will pay t replace the dwelling up t the limit n the plicy. If yu have guaranteed replacement cst cverage, the insurer will pay whatever it csts t rebuild, even if it exceeds the plicy limits. What if I have a mrtgage and want t take a cash settlement? If there is a mrtgage lender listed n the plicy, the lender is entitled t the any utstanding mrtgage amunt. Lenders are well prtected under the Standard Mrtgage Clause. Page 3 f 5
S if the plicy had a limit f $450,000 and there was an utstanding mrtgage debt f $450,000, the bank wuld get the $450,000. If the prperty was insured fr nly $375,000 and $450,000 was wed n the mrtgage, the bank wuld get the $375,000 and the hmewner wuld still we the $75,000 balance f the mrtgage t the bank. Of curse, the land is still the hmewner s t sell. Further infrmatin abut insurance and mrtgages Insurance is there t help peple recver frm the unexpected. It is nt meant t cver mrtgage payments after a lss r an utstanding mrtgage n a hme. Hme insurance is designed t cver the csts assciated with rebuilding a hme and the csts f cntents. Hmewners whse dwellings have been destryed by fire still we the utstanding balance n their mrtgage t their lender. Any claims payment will be made jintly in name f the insured(s) and the mrtgage lender. If the hmewner chses t rebuild the hme n the same site, the limit f insurance r full replacement cst applies. Any utstanding mrtgage wuld cntinue t be in place and the hmewner wuld be effectively returned t the same financial psitin that they were in prir t the catastrphe. Insurance is intended t put yu back in the psitin yu were in prir t the lss. Alternatively, hme insurance plicies can ffer cash settlements. There are financial implicatins assciated with accepting a cash settlement. Plicyhlders cnsidering cash settlements shuld weigh the financial aspects carefully and make the best chice fr them. Cash Settlements In the event f a catastrphic event, like the wildfires that destryed hmes in Frt McMurray, an insured hmewner has the ptin f: Rebuilding the hme n site, r Taking the depreciated ACV f the hme and rebuilding elsewhere. There are several factrs t cnsider when chsing whether r nt t accept a cash settlement: The full replacement cst f the hme versus its depreciated actual cash value; The utstanding value f a mrtgage, if any, n the prperty; and The market value f the hme and land. If the hmewner chses t take the ACV f the hme, and rebuild r invest thse funds elsewhere, the hmewner als needs t cnsider the value f any utstanding mrtgage amunt. Page 4 f 5
If there is an utstanding mrtgage n the prperty, then lenders, such as yur financial institutin, are prtected under the Standard Mrtgage Clause. If there is a mrtgage lender listed n a hme insurance plicy, they are entitled t the utstanding mrtgage amunt. In thse rare situatins where the prperty was insured fr less than the utstanding mrtgage balance, yu wuld still we the balance. Of curse, the land where the hme std still belngs t yu and can be sld t help pay ff any utstanding mrtgage amunt. The decisin by an insured hmewner t take the ACV f the hme instead f rebuilding n the same site is a persnal financial decisin. Replacement Cverage Typically, a hmewner s plicy cvers replacement cst. This ffers cverage up t the limit n the plicy, r if a plicy specifies guaranteed replacement cst, the insurer pays whatever it csts even if it exceeds the plicy limits, if the hme is rebuilt. Keep in mind that mst, but nt all, plicies cntain a same site requirement that the hme must be rebuilt n the site where it was befre. Buildings and Land The insured value f the hme des nt take int accunt the value f the land. Hmewner s cverage is based n replacement cst, and the limits f insurance d nt fluctuate with market value. Even if the market value f the hme has drpped, the plicy limit remains the same. Page 5 f 5