Filing a claim

How to file a home insurance claim in Ontario

A claim is one of those things you hope never to need and then have to figure out under stress. Knowing the steps ahead of time — and when a claim is even worth filing — takes a lot of that pressure off. Here is how the process generally works.

Before you file: is it worth a claim?

Not every loss is worth claiming. If the damage is close to — or below — your deductible, you may pay most of the repair yourself anyway, while still recording a claim. Because your claims history is one of the factors insurers use to set your premium, a small claim can sometimes cost more over time than it pays out.

That is a judgment call, not a rule. A large or clearly-covered loss is exactly what the policy is for. The point is simply to look at the deductible and the size of the loss before you pick up the phone, rather than after.

The claims process, step by step

The details vary by insurer, but almost every home claim follows the same broad path. Moving through it deliberately — and keeping records at each stage — is what makes a claim go smoothly.

• •Report the loss to your insurer or broker promptly
• •Document the damage — photos, video, and a list of what was affected
• •Take reasonable steps to prevent further damage (for example, stopping a leak)
• •Work with the adjuster your insurer assigns to assess the loss
• •Review the settlement offer before you accept it

The adjuster and proof of loss

After you report a claim, your insurer typically assigns an adjuster to investigate — to confirm what happened, review your coverage, and estimate the cost. You may be asked to submit a "proof of loss": a formal statement of what was damaged or lost and its value.

This is where your documentation pays off. Photos, receipts, a home inventory, and records of any emergency repairs all support your proof of loss and help the adjuster reach a fair estimate more quickly. Keep copies of everything you send.

Actual cash value vs replacement cost

How much a claim pays depends partly on how your policy is written. Actual cash value (ACV) settlements deduct depreciation — an eight-year-old sofa is paid at its depreciated worth, not the price of a new one. Replacement cost coverage pays what it costs to replace the item today, often subject to actually replacing it.

Knowing which basis applies to your contents — and to your dwelling — tells you what to expect from a settlement before you are in the middle of one. It is worth checking on your current policy rather than assuming.

How a claim can affect your renewal

Insurers treat claims history as a rating factor. A single claim may have little effect, but a pattern of claims can influence your premium at renewal or, in some cases, an insurer’s willingness to renew. This is the longer-term cost that belongs in the "is it worth filing" decision above.

None of this means you should avoid legitimate claims — that is what you pay premiums for. It simply means the choice to file a small, borderline claim has a downstream side that is easy to overlook in the moment.

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