Storm victims should think twice before entering damaged homes, filing insurance claims

A Public Safety official in New Brunswick says people should not rush into their homes to assess storm damage.

If there's still water in your basement, for example, it may not be safe to enter, said Geoffrey Downey, a spokesperson for the department.

Once it is safe, Downey said, the first thing to do is contact your insurance company and start documenting the damage.

It's really important to keep receipts for any repairs and replacement purchases, said Downey, and to log the number of hours you and others put into cleaning up your property.

WATCH | Fiona's path of destruction in one community

Residents of Grand-Barachois reckon with damage and loss from Fiona

2 years ago

Duration 2:23

In Grand-Barachois, N.B., residents found homes and cottages knocked off their foundations, piles of broken glass and flooding after post-storm Fiona.

Post-tropical storm Fiona made landfall in New Brunswick overnight from Friday to Saturday, causing severe damage along the east coast.

It will take weeks to get a complete picture of the damage, said Downey, but there are "reliable indications" the repairs will require more than the $35 million paid out after storm Dorian in 2019.

New Brunswick's consumer advocate for insurance, an independent legislative officer, also emphasized the importance of taking pictures before removing or trashing any damaged items, such as furniture.

You have to prove you owned a damaged item in order to receive compensation for it, said Michle Pelletier.

It's best to keep the items on your property until you speak with your insurer, she said.

Pelletier, too, is advising people with storm damage to be patient.

It may take 24 hours to hear back from an adjuster, she said.

Meanwhile, said Pelletier, it's a good idea to look at your contract to see what is and isn't covered by your policy.

Usually wind damage is covered, she said, but water damage generally requires a special endorsement, and not all companies offer it to customers who live in flood zones.

If wind damages your roof and water comes in that way, damage will be covered, said Pelletier.

But if water comes from some kind of problem in the basement, that may not be covered without a special endorsement.

Tree damage is generally covered also, she said, but even if it's your neighbour's tree, the claim must be filed against your own policy.

To claim or not to claim

The federal-provincial financial assistance program for Fiona relief is meant to cover un-insurable loss, said Downey.

It won't provide compensation for every item people may have lost in their household, he said, but it will cover everything needed for people to get back on their feet again.

That includes appliances that couldn't be removed, clean-up costs, and repairs to driveways and retaining walls.

Water damage may be covered, but not necessarily.

"If affordable insurance is available to you, then it will be covered under your insurance, he said.

"If you chose to decline affordable insurance then it won't be covered."

Food in freezers that spoiled because of power outages may be covered by the government relief program, he said, if it's not covered by a homeowner's insurance policy.

People could potentially also be compensated, Downeysaid, for food that was in a root cellar and lost due to the storm.

Just because something is covered by an insurance policy doesn't mean a homeowner should file a claim, said Pelletier.

"Be careful," she said. "If you only have a small claim small damages think twice."

If the damage is in the tens of thousands of dollars, an insurance claim is probably the way to go, said Pelletier.

But if you only have a claim for $1,000 and a $500 deductible, you'll quickly end up spending more in premiums.

"Those claims will be put on your insurance record and for sure, next year you can only imagine that you're going to have an increase in your rate."

Home insurance is not very regulated, noted Pelletier.

Companies don't have to ask permission to raise rates.

Rates can be expected to rise, she said, along with catastrophic losses from extreme weather.

Some applications already filed

The time it will take to find out about eligibility for government compensation will depend on how complicated the application is, said Downey.

"As long as they've filled out all the necessary paperwork and provided all the receipts and documented the damage, then certainly within four to six weeks is not unreasonable to expect to expect help."

An application that doesn't have proper documentation, he said, usually takes longer, because it requires a lot of back and forth with staff administering the program.

A few applications have already been filed, he said, adding there's plenty of time left.

The deadline is Jan. 31.