Every year, many Canadians pay out a high percentage of their money in home insurance claims. When this occurs, one may be curious about what this money is being used for. When it comes to better understanding insurance in Ontario, understanding the types of claims can help you protect yourself effectively.
From harsh weather to home robberies, Ontario has a unique set of risks that can lead to home insurance claims. When you’re informed about what other Ontarians frequently claim, it can offer you valuable insight into how to prepare and prioritize certain types of home insurance coverage. Luckily, isure has broken down the most common home insurance claims in Ontario and what they mean for homeowners across the province.
What Is a Home Insurance Claim?
To begin, we must first ensure that we have a clear understanding of what a home insurance claim entails. A home insurance claim is a request to your insurance company for a payment. This occurs after a covered loss, such as home damage or a theft.
To file a home insurance claim, you must make sure the claim meets your policy’s deductible. From there, please document the loss, and your insurer will go ahead and assess the damage and determine your settlement amount. This will usually be based on replacement cost or the actual cash value.
What Are The Most Common Home Insurance Claims?
Every year, a majority of home insurance claims result from intense weather events, which relate to climate change. According to the Insurance Bureau of Canada, the number of reported claims skyrocketed to a record 228,000 across Canada. This was due to the severe weather events that occurred in the Summer of 2024. So, let’s take a look at what the most common home insurance claims continue to be.
1. Trees Falling On Homes
Over the past few years, a multitude of trees across North America have been destroyed by the emerald ash borer; an invasive species of beetle that saps the nutrients from popular street trees, such as ash trees. If the tree is left to rot, all it takes is a strong wind to snap a branch, or weaker tree trunk, and damage your property. Insurance coverage for damage caused by trees can sometimes be complicated. In many cases, insurance may not cover damage caused by wind or storms, so it’s critical to read the fine print of your policy.
When it comes to dealing with fallen trees, whether on your property or not, the responsibility is not always clear. The best way to minimize tree damage is by spotting any weak branches or trees early and removing them before disaster strikes.
2. Hail Damage
Though not as common as others on this list, hail is slowly becoming a bigger factor when it comes to insurance payouts. This is especially the case when it comes to payouts for severe weather events. Upon first glance, hail may not seem too damaging. However, when it comes to roofs and siding, they can wreak havoc. On top of this, the damage caused by hail leaves a perfect area for mildew and mould to fester. If a storm is very bad, it can even break windows or put holes in a roof.
Over the past decade, there have been a plethora of major hail events throughout the country. This has led to millions of dollars in insurance payouts. To avoid hail damage, always make sure your roof is regularly maintained. If a hail storm occurs, always check your property afterwards for signs of trouble.
3. Home Theft or Break-Ins/Burglaries
In Canada, a residential break-in happens every 90 seconds. On top of this, more than 80% of said break-ins actually occur during daylight hours. Generally, your home insurance policy will cover theft. However, when it comes to high-value items such as jewelry or art, you may need to purchase additional coverage.
Luckily, there are a lot of deterrents you can take to prevent home break-ins. These include installing motion detectors, security systems and securing your doors.
4. Water Damage
Without a doubt, the most common home insurance claims are due to water damage. This is partially due to recent incidents of severe weather, stemming from climate change. Overall, flooding is the costliest of natural disasters in Ontario. When it comes to your home, water damage will fall into two categories. These include outdoor flooding and indoor flooding.
Outdoor Flooding
Outdoor flooding accounts for roughly 75% of flooding losses for residential property owners each year. Generally, outdoor flooding occurs when bodies of water, such as lakes or rivers, overflow into dry land, affecting housing. In most cases, outdoor flooding is not covered by your standard home insurance policy. However, with a recent spike in outdoor floods occurring throughout Canada, many insurers have introduced residential overland flood coverage throughout the country. It is important to note that outdoor flooding due to storm surges or tidal waves is not covered by most policies.
Indoor Flooding
Indoor flooding is, as you guessed it, flooding that occurs indoors. This can consist of situations such as bathroom leaks, toilets, showers that won’t drain or corroded piping. Regardless of the situation, indoor flooding can always lead to insurable losses.
If you live in a big city, such as Toronto, it’s important to be mindful of sewer backup. This is because, in many situations, cities are unable to keep up with the water from increasing extreme weather events. This results in water backing up into buildings. One way to mitigate this risk is to install a backwater valve. Additionally, many insurers offer sewer backup coverage as well.
5. House Fire
When it comes to common home insurance claims, there is no doubt that fires are one of the most destructive hazards a homeowner can face. Fires can start from unattended cooking, electrical issues, candles or indoor smoking. When it comes to home insurance, practically all homeowner insurance policies will cover damages from a fire. This also will include situations where fires were started by someone other than you, or from a neighbouring property. In many cases, your home insurance can also cover you for temporary housing if your home is unlivable due to a fire.
It is always important to follow the necessary fire safety tips to protect you, your family and your home!
6. Liability Claims
As a homeowner, you have a responsibility to all of those who live within it, as well as those whom you invite into it. Due to this, personal liability insurance is another one of the most common insurance claims.
When you purchase home insurance, personal liability coverage will be part of it. This is to protect you in the event you or a household member is found responsible for causing bodily injury to someone else. Your personal liability coverage will protect you in the event a lawsuit were to occur. There are many examples in which personal liability claims could occur. These include slipping and falling on ice, injury to guests while serving them alcohol, or animal-related bites.
Without liability coverage, you can end up paying out of pocket for any of the above scenarios. This is where things can get pricey, since it will cover legal and/or medical costs as well as repair or replace any damage done to someone else’s property.
Common Home Insurance Claims: Conclusion
At the end of the day, prevention is key when it comes to avoiding any claims at all. This includes theft-proofing your home, maintaining your home, and taking the necessary precautionary measures. Whether you’re a new homeowner or one who has owned for a while, having the correct insurance goes a long way. If you’re in the market, don’t hesitate to reach out to us at isure. Contact us or request a quote today!
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