How to File a Home Insurance Claim in Canada

TL;DR How home insurance claims work

Home insurance claims are the reason you pay a premium for a home insurance policy. They’re the means by which insurance companies determine how much money they pay you after a loss, such as a house fire, burglary, or liability incident.

The home insurance claim process involves four primary parties: 

• The policyholder (you): You’re responsible for making a thorough report with evidence of the loss you’ve experienced and working with the insurance company to resolve the claim and repair the damage. You’re also responsible for paying your deductible. 
• The insurance representative: Your agent or advisor will take your report of the claim, check your policy to see which coverage (if any) is applicable, and help you get started with the paperwork. 
• The adjuster: Your insurance adjuster’s job is to review all the evidence you provided, inspect your property (if applicable), and work with you to determine how much your policy will cover. ‍
• The contractor: If your home is damaged, your claim payout may go directly to one or more contractors repairing your home. Your insurance company may recommend a preferred contractor, or you can choose your own.

What does home insurance cover in a claim?

The first step in the home insurance claim process is determining what coverage applies. Depending on the nature of the incident and the type of policy you have, you might be able to claim multiple benefits.

Coverage can vary significantly depending on the nature and extent of the damage and your policy terms. Read your policy carefully before filing a claim to understand what you may be eligible for. 

In addition to reviewing the categories of coverage on your policy, check these details: 
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• Covered perils: Some home insurance policies have a specific list of perils (i.e., causes of loss) that the policy covers. Others cover perils on an “open basis” and only exclude certain perils in writing. 
• Replacement cost or ACV: Check to see whether each section of your policy covers the full cost to replace your property or only its actual cash value (i.e., purchase price minus depreciation). Dwelling and other structures coverage is typically on a guaranteed replacement cost basis, but contents coverage may only pay for the cash value of your items at the time of loss. ‍
• Special limits: Some personal property, such as jewellery and sporting equipment, may be subject to special coverage limits. Check to see how much you’re eligible for.

When should you file a home insurance claim?

In general, you should file a home insurance claim if the cost to repair or replace your property is well beyond what you could manage alone. 

Home insurance isn’t designed to cover very small claims. That’s why your policy includes a deductible—a portion of the cost you agree to pay before your insurance company will cover the rest. If the cost to repair or replace your property is below your deductible, you can’t file a claim at all. 

But how far above the deductible should your repair costs be to justify a claim? For most homeowners, filing a claim for any amount less than double the policy deductible isn’t worth it. For example, if your home needs repairs costing $2,000 and you have a $1,000 deductible on your policy, it may be simpler and more cost-effective to pay the full $2,000 and avoid a premium increase. 

That’s the biggest downside of filing smaller claims: any home insurance claim resulting in a payout will raise your insurance premiums. You may also lose a claims-free discount on your policy, if you had one. Take the increased premium cost into account when deciding whether a claim is worth it. 
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Reserve home insurance claims for catastrophic damage and worst-case scenarios

If you're not sure, when possible, reserve home insurance claims for catastrophic damage and worst-case scenarios. If you’re not sure whether a claim is warranted, weigh the potential increase in premiums against the financial hit you’d take in the short run by paying out of pocket.

How to start a home insurance claim

Before you start a home insurance claim, make sure that you and all household members are safe. Call the fire department, seek medical assistance, or contact the police if needed. Once all occupants are safe and the incident is over, take steps to mitigate further damage (e.g., turning off your home’s water supply or electricity, securing a tarp over a hole in your roof). 

To open a home insurance claim, you’ll need to start by contacting your insurance provider. Some insurers allow you to file a claim through their website or mobile app, but calling the claims department is typically the best way to report a claim and get human support. Your insurance agent can confirm your coverage and deductible and let you know what paperwork is required for a claim. 

Gather as much documentation as possible for the incident. Evidence for your claim could include: 

• Photographs and video showing the damage to your home or belongings
• Photos showing the condition of your home and belongings prior to loss
• Receipts, credit card statements, warranties, or owner’s manuals to establish the value of your items
• Police reports, if applicable
• Any other documentation that your insurance company requests

In Ontario, provincial law requires all insurance companies to send policyholders a “proof of loss” form when notified that damage has occurred. You’ll need to fill this form out and send it back with all available documentation attached in order to file the claim. 

What happens after you file a claim

Once your insurance company receives your proof of loss, they’ll typically have 60 days to evaluate the evidence and issue a final claim decision. The person in charge of reviewing your claim is known as a claims adjuster. 

In addition to reviewing the documents you provided, an insurance adjuster will typically visit your home to inspect it. They may take a statement from you as well as from other parties who were involved in or witnessed the incident. They’ll use all of their observations and evidence to write an estimate of what they believe to be the covered cost of repairing or replacing your property. 

It’s your job to stay in touch with the adjuster and answer their questions as clearly and honestly as possible. In the meantime, you’re responsible for vetting and hiring contractors to repair your home. They will provide estimates of the cost.

What if the adjuster’s estimate is too low?

If you or your contractor disagree with the insurance adjuster’s determination of the payout you’re owed under your policy, you can ask to speak with the claims supervisor or head of claims to get an explanation for the discrepancy. If you’re not able to come to an agreement with the assigned adjuster or their supervisor, you can bring your concern to your insurance company’s ombudsman or the General Insurance OmbudService (GIO) of Canada.

How do insurance companies actually make payments? 

Depending on the nature of your claim, you might receive your insurance payout in a number of different ways: 
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• Physical damage claims: Your insurance company will likely send payment directly to the contractors or service providers hired to repair your property. 
• Personal property claims: Your insurance company will likely send a cheque for the full value or replacement cost of your damaged items, leaving you to purchase the actual replacements. 
• Liability claims: Your insurance company will likely handle any legal disputes and pay any court-ordered settlement on your behalf, up to your policy’s limits. 

What can affect your claim outcome?

Your claim outcome depends on a wide variety of factors, but it all starts with your policy. 
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• Policy limits: Every part of your home insurance coverage is subject to limits, or the maximum amounts your insurer agrees to pay for a single loss. You may have separate limits for dwelling coverage, contents coverage, and ALE coverage, or your policy may have a single combined limit for most coverage. 
• Deductibles: Other than liability claims, most home insurance claims are subject to a deductible. This means you agree to pay a certain portion of the cost of repairs, or to have it deducted from the total sent to the service provider. 
• Loss settlement basis: Most dwelling coverage pays out on a replacement cost basis, meaning that your policy will cover the full cost to repair your home, not just the value of the structure before it was damaged. Contents coverage, on the other hand, may only cover the cash value of your items. 
• Covered perils: Home insurance doesn’t cover everything. For example, some types of water damage (like overland flooding) aren’t covered by home insurance unless you have a special endorsement for it. 
• The information you provide: The more complete and detailed your proof of loss is, the better the odds of a positive claim outcome.

Make a home inventory today

One simple way to improve the outcome of future claims is to create a home inventory detailing the type and value of your personal property. Collating detailed information about each item, including brand names, receipts, and photographs, will not only simplify the process of filing a claim but improve your odds of getting the full value of your belongings covered.

The Insurance Bureau of Canada (IBC) offers a home inventory spreadsheet to help homeowners start the process.

How a home insurance claim can impact your future premiums

Making a home insurance claim can impact your ongoing premiums in two ways: 

• Your insurance company will likely raise your base premium, often by 10–20%
• If you previously had a claims-free discount, you will lose that discount 

The exception: claims forgiveness. If you have an active claims forgiveness endorsement on your policy and no previous history of claims, your insurance company may agree not to raise your rate. However, you’ll lose the claims forgiveness clause, leaving you open to future rate increases if you have to file a claim later. 

If your home insurance premium does go up, the amount of the increase will depend largely on the nature and extent of the damage and the size of your payout. Minor claims may not increase your premium significantly, while major claims could lead to a much higher rate. 

You can lower your insurance premium after a claim by: 
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• Switching to another insurer: Not all insurance companies will put the same weight on your claims history. Compare home insurance quotes from multiple carriers, on your own or with the help of an insurance broker, and see if there’s a lower rate out there. ‍
• Earning new discounts: If your rate went up or you lost a claims-free discount, look into new discount opportunities. Maybe it’s time to bundle your home and car insurance or install a new centrally-monitored burglar alarm.

FAQ: Home insurance claims

This article is for general information only and is not insurance or legal advice. Examples and any sample quotes or rate ranges are illustrative and do not constitute an offer or guarantee of coverage, price, or eligibility. Actual coverage, discounts, and premiums depend on your individual circumstances and the insurer provider; if there is any discrepancy, your policy and insurer documentation govern. For advice about your situation, speak with one of our licensed insurance professionals.