When you take out home insurance, you hope you will never need it. Unfortunately, no one is immune to disasters. Fire, flood, tornado… are you properly protected?

Our damage insurance experts will guide you through a few steps to help you get through this difficult time.

What to Do in Case of a Major Disaster?

Ensure Your Own Safety

A damaged home can present risks for its residents. Your first responsibility is to ensure everyone’s safety, for example by leaving the house in the event of a fire.

You can also try to limit the damage by moving furniture to another room. You can start on some emergency repairs, but please note that these will only be reimbursed if the claim is accepted.

In all cases, you must wait until you have contacted your insurer before beginning any permanent repairs.

Notify Your Insurer or Broker as Soon as Possible

They will inform you of the process to follow to make a claim. A claim adjuster will be dispatched to the site quickly to assess the extent of the damage.

Your cooperation is essential to avoid delays and ensure that the situation is resolved efficiently. Your insurer may ask you for specific documents in order to process your claim:

Explanation of the causes of the disaster;
Photos and/or videos of the damages;
List of damaged or stolen property;
Relevant documents (like invoices);
Police report in the event of a criminal act.

If you do not notify your insurer of a claim or if you do so too late, they may refuse to compensate you. This is particularly the case if they have not had the opportunity to send an expert to assess the damage or investigate its cause.

Check Your Insurance Coverage

In most cases, your home insurance protects you against disasters such as fire, flooding, theft, or vandalism. However, there may be exclusions to your policy. Some types of coverage often come with a specific coverage amount, especially for damages caused by water or earthquakes.

Your building may also be subject to a reimbursement limit. The compensation paid cannot exceed the amount for which you are insured. Depending on the terms of your contract, the insurer may decide to repair, rebuild, or replace the insured property rather than pay you a sum of money. You may also have to pay a deductible, which will be subtracted from the amount of your claim.

Your insurer must compensate you no later than 60 days after being notified of the claim or after receiving all supporting documents.

What Not to Do

It may be tempting to increase the value of your assets or exaggerate the damage in order to obtain a higher insurance settlement.

However, making a false statement can have serious consequences:

refusal of compensation;
cancellation of your insurance policy;
difficulty obtaining insurance in the future;
and even legal action!

In any situation, honesty is always the best policy. You don’t want to add a lawsuit to the mix when you are already experiencing a disaster…

Relocating After a Disaster

When you can no longer live in your home after a disaster, you may need to find a temporary solution. There are several reasons why disaster victims may need to relocate:

the need to rebuild a home destroyed by a fire;
renovation work that blocks access to important rooms (kitchen, bathroom);
damage that threatens your health or safety.

If you have home insurance, it normally covers relocation costs, commonly referred to as living expenses. In general, your insurer does not impose a specific type of accommodation on you. You can therefore choose the one you prefer: hotel room, apartment, house, etc.

Your insurance policy allows you to find a space that fits your family and matches the type of home you had before the disaster. For example, if you lived in a tiny house and needed to relocate, it would be unrealistic for the insurer to pay for a big 5,000-square-foot house.

Several options are possible when it comes to finding a temporary accommodation after a disaster:

Contact your insurer for recommendations;
Consult a specialized platform that offers accommodation solutions for disaster victims;
Visit tourist rental websites to find temporary accommodation.

You can also decide to stay with relatives, in which case you will receive a lump sum as specified in your insurance policy.

Your policy may also provide reimbursement for additional living expenses. The insurance will then reimburse you for any expenses that exceed your usual costs, such as:

Restaurants if you are staying at a hotel;
Shelter for your pets;
Extra mileage to get to work.

Check what is covered by your insurer and keep all your receipts so that you can be reimbursed.

Better Safe Than Sorry…

No one wants to find out after a disaster that they weren’t covered. To avoid unpleasant surprises, it’s important to carefully check the coverage included before signing your insurance contract. Make sure you have coverage that matches your actual risks. Your premium may be higher, but you’ll lose much more if you have to pay for damage that isn’t covered.

There are interesting options to consider:

In the event of a total loss, guaranteed replacement cost insurance helps cover all reconstruction costs, even if they exceed the value of your home. Please note that in order to be eligible, you must meet certain requirements, which is why you should take a moment each year to review your policy with your insurance broker.

Replacement cost insurance without a rebuild obligation allows you to choose not to rebuild your home after a loss. Instead, you can receive the amount of its value. This coverage is very advantageous because it gives you flexibility and makes it easier to settle the claim.

Getting Protection After a Disaster

Being the victim of a disaster can have consequences on your home insurance. Now more than ever, your coverage must reflect your reality. Your insurance broker is there to advise you on the best coverage options available to you, so don’t hesitate to contact them.

Premium Increase

Your home insurance premium may increase after a claim, since this is often perceived as an increased risk of future claims. The amount increase may depend on several factors: the frequency and type of claims, your history, and your insurance company’s policies. Generally, you will lose your claim-free discount, which represents a significant percentage for most insurers. Repair costs, for materials or labor, are also important when calculating your premium.

To minimize the impact of a disaster on your insurance, contact your broker and make sure that your coverage suits your needs.

Your Insurance Broker’s Role in the Event of a Claim

Having an ally to help you overcome difficulties is invaluable when you have lost everything.

At AMR, our role is to support you every step of the way in settling your claim. Your broker will liaise between you, the insurance company and the claim adjuster assigned to your case to facilitate the claims process. They will be available at all times to answer your questions and reassure you.

Experiencing a disaster can be a stressful and traumatic experience. Your broker will give you advice to help you put this nightmare behind you.