Home insurance Recent Posts

Your roof’s health and structural integrity is crucial to your home, as it protects it against harsh weather and other potentially damaging events. Did you know it can also influence the amount you pay for your home insurance?

When first getting insured, you’ll be asked for plenty of details about your home including its age, size, location, and roof. Your roof’s age, material, and even type factor into your insurance rates. Here’s why.

The age of your roof is generally a good reflection of how capable it is of handling extreme weather or other potentially damaging events. The older it is, the greater the risk of damage. Insurance companies generally look more favourably upon homes with recently renovated roofs versus those that haven’t been updated in two or more decades. 

From an insurance perspective, roofs that are 25 years or older can be challenging to insure. Some carriers may not insure homeowners with roofs older than 25 years due to the increased risk of damage, whereas others will so long as a professional inspection has been carried out – but at a higher rate. In other instances, insurance companies will insure older roofs but will cover them for their actual cash value (the roof’s value minus depreciation).  

Of course, it always depends on the provider, and different insurance companies have different rules. When looking for a new policy, make sure to openly discuss details about your roof and home with your insurance broker to avoid misinformation. Exaggerating or lying about the condition of your roof could result in future claims being denied, or your coverage being voided altogether.

Depending on the carrier, the material your roof is constructed from may be just as important as how old it is. Some insurance providers offer “preferred” rates for homes constructed of certain materials that are under a specific age. 

The material of your roof can also improve its durability in the long haul, saving you from having to make unexpected claims and preventing your rates from rising.  

Depending on the insurance company, you – as the homeowner – may be required to replace a roof type at a certain time based on the material.  

For example, some insurers will require replacement for asphalt, plastic, tar, gravel, or mineral fiber shakes roofing by 15-25 years, whereas other insurance companies do not differentiate by material and will require replacement by 20-25 years regardless. Some insurers may consider these roofs too risky to insure without replacement if a professional inspection (including photos) has been submitted.  

Work with a broker or ask your insurance provider to determine what is required of you based on your specific roof type.  

Insurance companies may prefer one material over another as the risk of damage may increase or decrease depending on what your roof is constructed from. Wood shingles and shakes are often looked upon less favourably than, say, asphalt because of their fire risk.  

Metal is also considered quite a favourable material in Ontario due to its high durability against things like windstorms and hail. But again, it depends on the insurance company. If you’re considering a roof replacement, talk with your insurance broker about roof requirements or preferred materials. Who knows? You might be able to save on your home insurance rates! 

It depends on the provider. Some insurance companies offer a “preferred” rate for roofs under a certain age and a regular rate for homes over that age, whereas some treat all roofs under the designated replacement age (if applicable with that company) the same.  

From a purely practical point of view, replacing a roof that is actively past its prime and/or even decaying and having some recurring issues, is wise. A poor roof is likely to cause damage elsewhere in your home, such as allowing water/snow to enter in through your attic, or even cause ice damming. The better your home is looked after, the less likely you are to make a claim – which overall will save you on your home insurance. 

There are so many more ways to save on your home insurance with Mitch – and you don’t need to tear up your current roof to do it! Ask us about home and auto bundle discounts and other options; a broker will be able to discuss all the best solutions for you and your situation.

A massive storm on July 16 caused significant flooding in Toronto and other parts of southern Ontario. Toronto’s 2013 flood was one of Canada’s most expensive natural disasters, and early indications suggest that costs from this summer’s storm could match or even exceed that event. 

Overland flooding poses a serious threat to property in Ontario, but many homeowners don’t know how to adequately protect themselves. Let’s explore different coverage options, mitigation devices, and programs available to support Ontarians against flooding.   

Typical home insurance doesn’t cover losses damage due to overland flooding and can be limited for other water-related events, like sewer backup or groundwater rising. However, many insurance providers offer optional coverage that can be purchased for an increased premium that will include coverage for certain flooding events and scenarios.  

Most carriers offer optional coverage for sewer backup and overland flooding, but groundwater coverage is a little scarcer. Below is a table comparison of some of Mitch’s most popular home insurance carriers and the types of optional water damage coverage they offer: 

Sewer backup insurance is one of the more popular water damage insurance options. Water or sewer backup isn’t only disgusting and unsanitary, but it can cause a lot of damage to a home.

Standard homeowners insurance doesn’t cover sewer backup, which is why it’s handy to have sewer backup insurance added to your policy. It covers backup for any variety of reasons, including aging sewer systems, storm water and sewage pipelines, and sanitary main blockages. 

Overland freshwater flood insurance, or simply overland water insurance, is optional and not included in standard home insurance but can be added as an endorsement.

It covers damages to your home that results from overland water entering through your roof, doors, and windows. It can cover damage to both the exterior and interior of your home, as well as loss of property due to flooding.

Groundwater insurance is an optional coverage that, unlike overland water and sewer backup, isn’t always provided by every carrier. It covers groundwater entering your home via its pores or cracks during spring thaw, periods of heavy rain, etc.   

Groundwater insurance will pay for damages caused by water but won’t cover damages to a broken foundation. This is your responsibility to fix as the homeowner. 

Many insurance companies will also offer discounts if a homeowner has installed an approved water loss prevention device. The list of approved devices will vary by insurer, so it helps to talk to a broker about which ones are worth your money. Here is a list of some of the devices that many insurance companies will provide discounts for: 

Even without considering the insurance discount aspect, having mitigation devices can be an excellent way to provide peace of mind for you and your household and perhaps even prevent future damages, saving you from having to make a claim and deal with insurance altogether. 

Note as well: some insurance companies offer funds to offset the cost of mitigation tools for flooding after a claim. Ask your broker about options if you’re interested in purchasing a device. 

Cars can get seriously damaged in floods too, the same way your home can. However, coverage for “flood damage” to your vehicle may only exist if you’ve purchased collision or comprehensive coverage—both optional, and the type of coverage that kicks in depends on how the damage occurred. 

For example, if your car was stored in your garage and flooding damaged it, coverage for its repairs would fall under comprehensive insurance. You would have to pay your deductible in this instance, and your rates could be impacted. 

If you intentionally drive through a flooded area, even if it’s necessary to get to higher ground, any resulting damage would fall under your collision coverage, if it existed. Same as the example above, you would have to pay your deductible and your rates might even be impacted. 

Because many cities in Ontario are vulnerable to climate-fueled floods, some municipalities have taken the initiative to introduce certain programs to make households more resilient.  

Toronto has an existing basement flood protection program, which not only carries out assessments across the city and makes judgements on where to add on additional security measures like underground storage tanks and upsized sewers but also offers subsidies up to $3,400 for homeowners to install anti-flood devices, like sump pumps.  

There’s also the Windsor basement flooding protection subsidy program. Subsidies for eligible work are offered on a first-come, first-served basis. Each property has a maximum lifetime eligible subsidy of $2,800 which includes the installation of a backwater valve, sump pump (both with sump pump overflow and disconnect floor drains or overflow to discharge outside to surface), backwater valve, or disconnect of foundation drains from floor drain.  

Ottawa offers residential grants for sewer backups. Anyone impacted by flooding 3 times or more may be eligible for a grant of up to $1,000 under the Residential Compassionate Grant policy , designed for sewer backups. Resident must have owned or rented property for all 3 of backups, experienced at least $1,000 for most recent backup, proof of all 3 backups within a 15-year period, and paid their property taxes in full.  

These programs exist in addition to insurance, not in place. Check with your own municipality to see what’s available to you.  

Water claims can be serious business, so if you have any further questions about how to protect your home or are looking to supplement your home insurance policy then we have you covered here at Mitch. Give us a call at 1-800-731-2228 today.

Is your roof due for a replacement? Your roof is integral to your home’s architectural stability, so making sure it’s always up to snuff is crucial. 

Choosing the right time to schedule a roof replacement can significantly impact both the quality and cost of the installation. Here is the breakdown on what time of year is best to replace your roof.

Replacing a roof is not an easy decision. It’s a significant investment, costing an average of $10,000 for a 3,000 sq. foot roof or even more if an older roof must be stripped first.   

Why do you need to replace your roof? Most roofs should be replaced every 15-25 years (frequency depends on the type), but there are other reasons why a roof might warrant replacement. Here are some of those reasons: 

As mentioned above, a roof will need to be replaced when it has reached the end of its lifespan. However, every roof material has a different durability. For example, a traditional asphalt roof may last up to 25 years. A metal roof, however, can last over 40 in some climates. Wood shakes may last 15 years before they’ll need to be replaced. Roofs that are reaching the end of their lifespan may show it through deterioration of shingling, leakage, dark patches, and more.  

Has your roof started to sag unexpectedly? Can’t handle the weight of heavy snowfall? It may be experiencing structural issues. This could be associated with your roof’s age, or it could be poor installation. Whatever the reason, if your roof is unable to hold itself up, it may be time to schedule a roof replacement. 

If it seems like your roof is constantly getting damaged with every snowfall or weather event, it could be time to schedule a replacement. Recurring damages could be due to poor installation, incorrect material for the climate you’re in, or because your roof is getting older.  

Some roofing materials can’t handle certain climates. For example, clay and tile roofs tend to fare better in warmer weather. They may not be able to handle the impact of hail or heavy snow, which is prevalent in colder temperatures and can cause these roof types to deteriorate much faster than expected.  

The impact of the seasons on your roof’s installation is huge. It’s more than simply scheduling a replacement based on when your roofing company has time available – it’s also about what time of year is best to ensure optimal installation. So, which season is best? 

Fall is universally considered the best time of year to replace your roof. Stable, cool conditions allow for shingles to seal properly and set prior to winter. Plus, with the cooler temperatures it’s usually a more comfortable working environment for the installation crew. Homeowners can take this time to prepare their homes for the upcoming winter. 

That said, summer is the most popular season for roof replacement. Summer offers similar favourable conditions as spring, but without the excess precipitation and winter backlog. However, summer still poses some challenges as intense heat and possible thunderstorms (depending on where in Ontario you live) can be detrimental to the installation of your new roof. If you are looking to replace your roof in summer, try to book as early as possible in the season to take advantage of the predictable warm weather without the heat waves or storms.  

Although roof replacement is still possible in spring, sometimes heavy precipitation can cause issues with the sealing of your roof. However, it does offer more comfortable working conditions for your installation team, as it isn’t too cold or warm. Sometimes spring can be quite busy for contractors due to the winter backlog, so it can be tough to schedule your replacement in.  

What about winter? It’s usually not advised to schedule a roof replacement during winter unless necessary. Colder temperatures can compromise the sealing process, which means shingles may not adhere correctly. In some climates it may be possible, plus winter is a much slower season for roofing contractors so you may not find much issue in scheduling a replacement. 

Yes! Some companies will offer what is called a “preferred rate” for homeowners that have a roof under a certain age. Certain companies may also charge homeowners with older roofs more due to the higher risk of potential damages. A new roof has the potential, depending on the provider, to lower premiums by between 5% and 30%.  

Ask your broker about your insurance provider’s “rules” around roof replacement, such as when it’s required, if inspections are necessary, and if replacing your old roof will qualify you for an insurance discount. 

Mitch is happy to pick up the phone to discuss any concerns you might have about your home insurance, savings opportunities, and more. Ask us about discounts, like home and auto bundle discounts, new roof discounts, and much more.

Yesterday’s torrential storm in southern Ontario brought over 100 mm of rain to some areas in a few short hours, causing widespread flooding. The Insurance Bureau of Canada has already said that the damages from the storm could surpass $1 billion.  

Many people across the province are dealing with damage to their home, property, vehicles and more; even Drake’s Toronto mansion was flooded. Here’s information on how to make a claim after a flood and what’s covered by insurance.  

Your safety is of the utmost importance. Even before you file a claim, make sure not to do any of the following (for you or any members of your household): 

When documenting damage to your home, take pictures and videos, but be cautious of any loose debris or unstable structures. When filing a claim, be sure to mention these hazards. If your damages are severe, your insurance company may help speed up repairs to get your home back to a livable condition. 

Floods are a special kind of event; not every standard home insurance policy will cover them, so you’ll need to have the appropriate endorsements in place for flooding to be covered. Flooding is typically insurable through overland flood coverage, which is an optional add-on that covers specific types of water damage, including overflow of ponds or rivers, lakes, and surface water from heavy rainfall. It can also cover groundwater/rising of water table that results in water entering a home through ground level. 

Damage to vehicles due to water and flooding may only be covered if you have comprehensive insurance. Keep in mind that every insurance policy is different, so check with your insurance representative or broker to see what you have.  

Given the extent of this week’s severe weather event, insurance companies will be dealing with a lot of claims. This may mean longer wait times, so patience is key.  

If you need to file a home insurance claim because of flooding, its important to know that it’s a requirement of your policy to do what you can to avoid further damage. Restoration companies will certainly be busy during this period, so it’s a good idea to phone one up as soon as possible to remove the water from your basement and start setting up fans and dehumidifiers to help dry the space.  

If your home is damaged to the point where you cannot re-enter it, make sure that you keep receipts for any expenses you incur during this period. Hotel bills, takeout, childcare, laundromat costs, etc. – anything necessary beyond what you’d usually spend in the month. You can later get this reimbursed through the additional living expenses portion of your policy.  

Every insurer has their own timeframe for when you can submit claims. Submitting a claim and making your insurer aware of a loss are two different things though, and you do have a requirement to notify your insurance company as soon as possible. Check your policy for exact terms and conditions around time limits. If your car has been damaged as well by flooding, you’ll want to get a claim through your auto insurance provider as well. 

After major storms with widespread damage, it’s better to file sooner than later as insurance companies will be busy with everyone’s claims all at once. The sooner you get things submitted, the sooner you’ll get your settlement.  

Filing a claim is as simple as calling your insurance company’s claims hotline. You’ll be assigned a claims adjuster, who will serve as your point of contact through the process. You can also contact your broker if you have pressing questions. 

Your claims adjuster will be the person reviewing your policy to ensure you have coverage for the damage you experienced. Without the necessary coverage, your claim will likely be denied. 

The initial steps of an insurance claim usually go like this: 

If you have the necessary coverage, the claims adjuster may enlist several different experts to review the extent of damage to your home/property or car and the potential cost of repairs. While steps for repairs and restoration are being determined, the adjuster may offer you a settlement based on the final estimate. You may also select a contractor of your choice (if you want) to do the repairs. 

Once repairs are completed and paid for (minus any applicable deductibles) your claim will end. Claims are usually paid in different ways, including e-transfer, cheque, or in some cases directly to the contractor.  

If additional living expenses were incurred during this period, remember to keep all receipts and invoices during the claim period. You’ll be able to get these reimbursed by your insurer, assuming all those costs were necessary.  

While your claims adjuster will be your point of contact through the process, you can always reach out to our friendly brokers here at Mitch if you have any questions or are wondering if it is worth filing a claim. We know claims can be stressful, especially after major storms that cause significant damage for many people and are always available to provide support and advice. 

Did you know the average cost of repairing a flooded basement is over $40,000?  Flooding is becoming more prevalent in Ontario, and more homeowners are at risk of costly water damage to their property. Floods in Ontario are the costliest natural hazard when it comes to property damage.  

Being proactive and taking the necessary measures towards protecting your home, especially against flooding and water damage, not only keeps you and your family safe, but it can save you big on your home insurance! 

Insurance revolves around managing risk, so it’s important for individuals to take measures to minimize their exposure. From an insurance company’s standpoint, mitigating risk holds significant value. Your home insurance premiums are determined by the insurer’s assessment of your risk profile. By actively taking preventive actions against potential losses, you become eligible for lower insurance premiums. 

Here are a few examples of proactive measures: 

Purchasing water damage insurance is another way to be proactive against potential losses. While insurance does not substitute for the installation of water loss mitigation devices or good home maintenance practices it can serve as an additional layer of protection to save yourself the financial burden of having to pay for expensive home repairs or rebuild after a serious flood.  

“Basic water damage insurance” is included in most policies, covering damages due to burst pipes, accidental escape from home water tanks, water infiltration due to another insured event (like a fire, impact from a vehicle, etc.), and sudden and accidental escape of water from municipal water mains. In addition to what’s already included in most policies, it’s recommended that policyholders strongly consider endorsements like sewer backup insurance, overland flood insurance, and groundwater insurance to cover against nearly all sources of water damage.  

Sewer backup insurance is a cheap addition to any home insurance policy, although its cost can be greater if you live in an area that may be at higher risk of flooding. It’s designed to cover you for damage to your home because of unexpected sewer backup, whether from your septic tank, overwhelmed sanitary sewers, blocked gutter systems, or even blocked city sanitary mains. 

Overland flooding is considered one of Canada’s most frequently occurring natural hazards, consisting oftentimes of rainwater but it can also be mixed with chemicals and contaminants. Overland water insurance (or overland flood insurance) can cover you for the damages to your home because of unexpected overland flooding. It’s a bit more expensive than sewer backup insurance if you live in a higher risk area. Some areas that are at an extreme flood risk may not be eligible for overland flood insurance at all. 

Water damaging your home via seepage through basement walls, floors, and foundations can be costly, but it can be covered by groundwater insurance. Groundwater insurance, if available, provides coverage if water enters your home because of heavy rain, spring thaw, or the rising of the water table.  

Some cities in Ontario offer subsidy programs to help homeowners cover the cost of basement flooding mitigation devices. These may qualify you for an insurance discount, depending on what’s being installed to be proactive. For example, the city of Windsor offers a program with a lifetime eligible subsidy limit of $2,800 per property to install a backwater valve, sump pump, sump pump overflow, and/or disconnect foundation drains.  

Keep in mind that water coverage in Ontario is ever-evolving as climate change continues to cause extreme weather events and municipal infrastructure proceeds to age. Discuss with your insurance broker to ensure you’re adequately protected against the risk of water damage.  

Insurance companies like to see their policyholders taking proactive measures to mitigate loss. Here is a sampling of some of our insurance partners and the kind of water loss prevention devices they offer home insurance discounts for: 

While insurance will help you in covering the cost of repairs/restoration to your home, it’s limited when it comes to physically protecting your property. If there’s been a particularly intense storm or heavy rainfall recently and water has gotten in your home, be sure to do the following:  

While being proactive is always helpful in preventing a loss, it doesn’t 100% ensure you won’t experience water damage from an unexpected flood or storm. But with the right insurance in place, at least you know you’re covered. 

Call a Mitch Insurance broker to discuss your current home insurance and see if you’re adequately covered against water damage. 

Are your insurance rates climbing? You’re not alone. According to StatCan’s Consumer Price Index, homeowners’ insurance has increased 9% from April 2023 to April 2024.

The Insurance Bureau of Canada has tapped into data compiled by StatCan and identified several of the main drivers that are impacting the cost of home insurance in Canada. Let’s break down some of those factors. 

It’s no secret that housing is becoming increasingly less affordable in Canada, and part of the reason for this is rising home replacement costs (or the cost to rebuild an entire house from scratch.) In addition, the cost to repair and maintain a home, or costs related to a property’s structural integrity, have gone up. It’s estimated that replacement costs have increased by 23% since January 2019 and maintenance/repair costs have increased by 18%.

But the biggest contributor? A massive increase of 61% in residential building construction costs since January 2019, reflective of the high cost of labour overhead, equipment, etc. This is because of multiple factors, including but not limited to COVID-19-induced material shortages, high demand, inflation, and talent scarcity.  

All the changes described above have resulted in higher home insurance costs, as insurers must pay out more to rebuild lost or destroyed properties. Insurers are therefore raising their rates across the board to ensure they consistently have enough of a payout pool to continue covering claims. This comes back to one of the core principles of insurance: the premiums of the many pay for the losses of the few.”

To break it down even more, a policyholder’s insurance premiums are used for several things, the main of which being to go towards a larger “sum” of money to later help pay claims. It’s a common misconception that the majority of premium is used for profit or operating costs; the larger sum of premiums are typically used to strengthen an insurance company’s payout pool. This ensures that even in the event of a catastrophic loss, their insureds are covered. So, when payouts become more expensive, insurers raise rates to offset present and future losses. 

Another reason for rising home insurance rates is the increase in frequency of natural disasters, both in the province of Ontario and throughout Canada. 2023 was the second year in a row where Canada experienced over $3 billion in insured damages due to severe weather and natural catastrophes. This is predicted to increase in the next few years, given that the five worst years for insured losses in Canada all happened within the last eight years.

This creates the same effect as the rising rebuild costs. Claims cost more, so insurance companies have no other choice but to raise rates across the board to ensure that, no matter the weather, they can afford to pay out claims. If worse comes to worst, they have reinsurance (insurance companies who insure other insurance companies) which can help them pay claims for catastrophic losses, but as reinsurance is required to step in more and more due to a high frequency and severity of losses, their rates end up rising as well. 

One of the most frustrating things about external influences raising home insurance costs is that it impacts everyone, regardless of the number of claims made. Those in “high-risk” communities are likely to see the largest increases, even if they themselves have not filed a claim.

Understanding why insurance prices are rising doesn’t make it easier on individuals whose rates are being indirectly affected. It can be extremely frustrating to see a rise in your rates, despite being as “good” a policyholder as you can be. Work with a broker to find more affordable solutions for your home insurance; they’ll be able to find you a great deal, even given the current climate.  

Insurance has always been needed, since way back when Babylon merchants would create “insurance policies” to reimburse the families of sailors who had died carrying out dangerous expeditions. It’s a stable industry, holding strong even against market volatility – but what does the future hold, given potential unexpected losses due to changing climate, tech evolution, and more?

Because so many external influences are changing the way we need to look at insurance, it’s become more imperative for consumers to find affordable options. If flood risk continues to increase, it’s possible that the government will need to step in to offer more public insurance programs to support individuals and families in vulnerable communities. Such programs are already underway, with $31.7 million invested to create a national flood insurance program. This program includes offering reinsurance for insurance companies to ensure there’s enough funds allocated to pay claims for large-scale losses due to extreme events like flooding.

It’s possible that, as other issues worsen, like wildfire and drought, other programs could be initiated to support communities that are most at-risk. It’s not certain when these programs will become a reality, but the work is already underway.  

Given the current climate and the state of rising home insurance premiums, it’s more critical than ever that homeowners are working with independent insurance brokers to find the best price for their home insurance. Here at Mitch, we work with dozens of top-rated carriers in Canada and can help you find a great solution for your insurance coverage!

Give us a call today and request a free, no-obligation home insurance quote.  

2023 was Canada’s worst wildfire season on record, with over 15 million hectares of land burned. Early spring’s precipitation (or lack thereof) is usually a strong indicator of the season’s wildfire severity, so what’s it looking like for 2024?

Experts are indicating that the 2024 wildfire season could be just as bad or even worse than 2023’s. While it isn’t quite clear what impact that will have across Canada, here’s what you need to know about the potential impacts of wildfire on your insurance.

Home insurance plays a significant role in wildfire disaster recovery.. Most, if not all, standard home insurance policies provide coverage for wildfire including:

It’s important to note that if you live in an area currently experiencing an active wildfire, you’ll likely have difficulty finding an insurance company that’s willing to sell you a new policy or increase the limits on your current coverage due to the imminent threat. Once the risk has passed and your home is no longer in an active wildfire zone, you should be able to purchase coverage again.

With wildfires and other severe weather events causing more insurance claims across Canada, rates are being impacted. What if the cost of home insurance goes up even more?

When policyholders pay their premiums, a significant portion goes into a “payout pool.” That payout pool is the money that insurers pull from when paying out claims. This means that when there are more losses, such as those that would be caused by a massive wildfire, your insurance provider ends up paying more from that pool. Insurance companies need to ensure they always have enough funds to cover claims, so they raise premiums for all insured homeowners to buffer against future catastrophic losses. So even if your home hasn’t been damaged by wildfire, you may see your rates increase because other homes in your area – or even in your province – have. This can be extremely frustrating for homeowners who have never made a claim, but see their rates increase regardless. Moreover, this can be devastating for homeowners who may not be able to afford the same comprehensive coverage they had prior. Many homeowners are required to carry home insurance by their mortgage lender, so going without coverage isn’t an option. 

Although home insurance rates are likely to rise in the coming years due to an anticipated increase in extreme weather, Canada is nowhere near the catastrophic situation the United States is currently seeing. State Farm, one of the U.S.’s major insurers, is no longer offering new insurance policies in the state of California due to the high risk of wildfires.  

Wildfires are certainly prevalent across Canada, but there isn’t any indication that providers will move away from insuring areas that are wildfire prone.  

Review your coverage with an insurance broker. This is always highly recommended regardless of the season, and even more so with the predictions about how this summer’s wildfires will dwarf those experienced last year. Ensure that your policy is sufficient in covering the entire replacement cost of your home.  

If your home has been damaged or lost due to wildfire, start your insurance claim as soon as possible to get a quicker settlement. All you need to do to start the process is call your provider to notify them of the loss. During the claims process, you’ll need to provide information about the damage to your home to ensure you get your full and fair settlement (this includes finding proof of ownership, documenting damages, etc.). Once any evacuation orders have been lifted and your home is deemed safe to re-renter, adjusters may also come out to look at your property and begin the process.  

Wildfire is always covered because fire is an insured peril on all property insurance policies. Unless you started the fire yourself, it will be covered – and that even applies to wildfires that are manmade/started by human error. Note, however, that if your car was also damaged in the fire, it may not be covered unless you have comprehensive coverage. 

Expect delays in communications with your insurance provider following a catastrophic loss that has impacted a widespread area. Insurance companies are likely to deploy resources from all over to help with large-volume losses, but it may still take some time to process your claim due to the sheer number of policyholders impacted. 

Concerned about wildfire or not having adequate insurance? Mitch’s insurance brokers can help review your policy when you need it. Give us a call. 

With mortgage rates seemingly on an unending rise, it makes sense to save money where we can. Home insurance is required by most mortgage lenders and banks so there’s no way around it, but you can save money by being selective about who you’re getting your insurance from. 

There are over 40 insurance companies in Ontario that sell home insurance, so it can be tough to know which one is best and will help you save money. Mitch Insurance breaks down which insurer is the best for home insurance, which can help you save, and the coverage that some of the top companies offer. 

There is no way to say for sure which home insurance company is best for you, the person reading this, since what’s best for one household may not be best for yours. Your home may be an older townhouse, have had its roof recently renovated, be situated a few blocks down from a fire station, etc., where your mother-in-law, who claims her insurance company is the best, has a rural, detached home that was built in the last ten years. The table below details the different insurance companies and how they compare: 

As you can see, how insurance companies are rated goes beyond price. Although home insurance prices may continue to rise into 2024 and beyond, having good coverage is an asset that shouldn’t go undervalued. A Mitch broker can help you choose the right insurer.  

Another question you may need to answer for yourself when searching for the best home insurance company in Ontario is whether you’re looking for standard or non-standard home insurance. As a buyer of insurance, you might not know the difference. Non-standard home insurance is designed to cover the following types of homes: 

Standard home insurance is often easier to find, as most markets will sell it. Non-standard home insurance can be pricier and harder to find, which is more reason why you should want the best home insurance company to work with to protect your home! 

If your home or rental is pretty typical and not too old or unique, most of the companies we’ve mentioned can cover you with insurance. However, there are situations that might make you a bit more difficult to insure. This could narrow down your choices. Insurers might ask questions like:

If you are found to need non-standard insurance, you may have a more difficult time choosing a company. Standard home insurance is often easier to find, as most markets will sell it. Non-standard home insurance can be pricier and harder to find, which is why you should want the best home insurance company to work with to protect your home! 

What’s best is really subjective, since your home is unlikely to be the same as anyone else’s – and even if it was the same brick, mortar, and stone, there’s still so many variables that can impact your insurance needs, i.e.: how you use it, if you rent it out, if it’s your primary residence, what your insurance history is like, and so on. When choosing a home insurance company, consider: 

Price isn’t everything. While it can be a huge part of choosing a good home insurance company, it’s not the end-all, be-all. There are a few key qualities you should consider when selecting a good home insurance company, which are as follows: 

An easy way to get information straight from your potential insurer’s customers is to check out online reviews on Google or broker websites. You can compile all this information together and compare. Keep in mind that online reviews can be unreliable, especially because those with bad experiences are more likely to post a review, companies can plant negative/positive reviews, and negative reviews can often result from long-term customers experiencing price increases (which were likely industry-wide). Use reviews to stay informed about any reoccurring “red flags” that reviews may highlight. 

Again, customer satisfaction studies (like the one J.D. Power conducts each year) are one way of measuring a company’s quality but they shouldn’t be the only thing you look at when considering an insurer. J.D. Power surveys only rate 12 out of the 40+ insurance companies that sell home insurance and the full detailed results are not available to consumers. Plus, the sample size (usually 100 responses) is relatively small, and the survey is done using online panels, which tends to be less reliable than other means of surveying. 

While there are laws in place to prevent any size of insurance company from being unable to payout claims in the event of a large disaster, bigger companies are still perceived to be more reliable than smaller companies because of them being more financially sound. Yet, many policyholders prefer to do business with the “little guys,” since they may be more focused on quality than quantity.  

Looking for affordable home insurance? Mitch Insurance can help. We work with over 70 top home insurance companies in Ontario and can help you find the right fit for your needs. Give us a call.

Last year was Canada’s worst wildfire season ever recorded. The blazing fires forced over 230,000 people to evacuate their homes and more than 15 million hectares of land burned between the months of April to October. 
 
Unfortunately, the Canadian government has said that this year’s wildfire season could be even worse making it increasingly vital for people to make sure they’re protected against this growing threat.  

Insurance coverage is crucial for all homeowners, but especially those whose properties may be at-risk of damage due to wildfire as we enter a “mega wildfire season.” 

Insurance is, unfortunately, not something that you can purchase once and forget about. Unlike cars, homes tend to increase in value over time. This is influenced by factors like supply and demand, inflation, economic growth, property improvements, land value, and historical market trends. So, the price of your home 10 years ago is likely different today. Consequently, what you insured your home for originally may no longer be sufficient to cover it. 

This is where having regular policy reviews comes in handy. A policy review can be conducted with an insurance broker, like Mitch, to stay ahead of possible gaps in coverage, especially in regions that are prone to wildfires. A broker can work with you to assess risk factors and adjust coverage limits accordingly, allowing you (the homeowner) to mitigate financial risks that come with inadequate insurance protection. 

Yes. Home insurance may cover many things related to wildfire. Home insurance can be broken down into the following categories: dwelling coverage, other building coverage, contents coverage, additional living expenses (or ALE), personal liability, and voluntary medical payments/voluntary property damage. With wildfire, the most important coverage will likely be your dwelling and building coverage, contents coverage, and ALE (if your home is so damaged it cannot be lived in while repairs are being complete – or if you’re forced to leave your home due to an evacuation order). 

Property damage coverage or dwelling insurance, can provide compensation for physical damage done to your home’s roof, foundation, walls, floors, etc., due to wildfire. It can also cover outdoor equipment, trees, plants, shrubs, building fittings and fixtures, etc.

Items in your home damaged in a wildfire may be covered under your contents coverage. There is usually a dollar limit to how much you can claim, and certain belongings – such as jewelry, antiques, cash, etc., – will have their own sub-limits. These limits are listed in your insurance policy. It’s a good idea to keep digital copies of warranties, receipts, and other proof of ownership of your property to ensure you receive a fair and speedy settlement if your belongings are ever damaged in a wildfire (or other insured event).

ALE coverage provides you and your household with compensation for any necessary additional living expenses during a time where your home is unlivable after a wildfire. You’ll be reimbursed for any necessary expenses beyond what you would ordinarily spend, like clothing costs, takeout, childcare, etc. ALE is used to reduce the financial burden that would otherwise be incurred because of a disaster forcing you to evacuate from your home.

If your home has been damaged by a wildfire, it’s important to get in touch with your insurer to let them know about your loss. This helps to get the claims process started right away, ensuring you get your settlement faster. If your loss is so severe that you are required to evacuate from your home and find temporary accommodation, be sure to keep all your receipts during this period and file these with your insurer to receive prompt compensation. 

Wildfires can slow down the claims process because of their widespread impact. Since your insurance company may be handling numerous claims simultaneously, it’s essential to maintain open communication with them and be thorough in providing documentation. This includes photographs, proof of loss, and receipts, which can significantly speed up the process. 

Knowing the details of your policy coverage is also important and can help you understand any gaps in your coverage and/or know when it makes sense to file a claim. 

While not an issue in Canada, in California some insurance companies are no longer offering home insurance because of wildfires. With costlier claims and an increase in extreme weather, certain homes in the state will not be insurable due to being located inside what’s known as an “evacuation zone.” While this isn’t the case for any provinces, insurers reserve the right to refuse to increase coverage in “at-risk” areas – they just can’t “cancel” coverage altogether. 

Insurance companies can also choose not to offer new coverage in specific “restricted areas,” such as those within evacuation zones or at high risk of wildfires. To make sure they’re following these rules, brokers carefully check maps provided by insurance companies. These maps help them avoid accidentally selling insurance for properties in restricted areas. 

These designated restricted areas can change quickly, sometimes overnight, as circumstances like wildfires evolve. It’s crucial for brokers and homeowners to stay updated. This way, they can ensure that insurance coverage remains appropriate for protecting homes and follows safety guidelines. 

Have questions about wildfires and your home insurance? Give us a call at Mitch Insurance today and one of our brokers will gladly discuss things with you.