Overcoming Home Insurance Claim Delays: A Guide

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Picture of By <span>Matthew Roberts</span>
By Matthew Roberts

Updated on February 6, 2025

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Picture of By <span>Matthew Roberts</span>
By Matthew Roberts

Updated February 6, 2025

Visit author page

4 minute read

Article Contents

Claiming home insurance is the worst thing that could ever happen. You love your home, and you don’t want anything to happen to your haven where your family resides – yet in 2023 alone, insured damage from severe weather in Canada exceeded $3.1 billion, making home insurance one of the top 5 most claimed insurance alongside health, auto, life, and property insurance.

Unfortunately, most insurers may drag their feet or request additional information. If you’re facing this right now, it’s understandable if you feel stuck or discouraged. Keep reading to understand why delays happen and what you can do about them can give you more control over the process, no matter which province you call home.

Resolving Home Insurance Delays at a Glance

  • Missing documents, complex claims, or staffing shortages at the insurer’s end can significantly slow down the home insurance claims process. Local laws, government regulations, and provincial insurance bodies are central in determining claim processing times. 
  • Keeping detailed communication records and following up regularly can help prevent unnecessary delays. 
  • Provincial insurance regulators and consumer protection agencies offer valuable support to policyholders facing disputes.
  • Carefully reviewing your policy and maintaining accurate home inventory records can prevent surprises during the claims process.

Understanding The Home Insurance Claims Process

To effectively navigate potential loss, understanding the process of claiming home insurance is fundamental. Below is a step-by-step guide for you to grasp the process of a home insurance claim.

You have to contact your insurer right after an incident (e.g., flood, fire, or break-in) because most home insurance policies have strict deadlines for reporting claims. If you fail to report within the required timeframe, the insurer might deny the claim outright. Delays in reporting claims are one of the top reasons claims get denied.

Some policies require immediate notification or within 48-72 hours of the incident. Failure to comply with your policy’s reporting requirements may be considered a breach of contract, leading to forfeiture of coverage.

Around this time, the insurance adjuster will review your claim, request supporting documents, and inspect your home. Immediately notifying the insurer plays a big part in this hard situation – you can guarantee the insurer that evidence and documentation are preserved, such as fresh photos or videos of the damage, witness statements and unaltered damage assessment by an insurance adjuster.

Once you submit a home insurance claim, the insurer evaluates its validity, coverage, and the compensation you may receive. They review your policy to determine if the damage, such as fire or water damage, is covered or falls under exclusions like wear and tear. 

Your home insurance deductible is subtracted from the payout, and if the damage cost is lower, filing a claim may not be worthwhile. The insurer also checks for fraud or inconsistencies, which may lead to further investigation or denial. If approved, they outline the settlement offer; if denied, they provide a reason, which you may dispute.

The insurer provides you with a settlement offer, which outlines the financial compensation or repair proposal to resolve your claim. This offer is based on factors such as policy coverage, damage assessment, and deductible deductions. You can choose to accept the offer, negotiate for a higher amount, or dispute the settlement if you believe it is insufficient.

Provincial Differences to Keep in Mind

Some provinces, like British Columbia and Alberta, face higher wildfire and flood risks, affecting coverage options and pricing. Each province has its own insurance regulator, such as the Financial Services Regulatory Authority of Ontario (FSRA) in Ontario or the Alberta Insurance Council (AIC) in Alberta, which can impact claim processing and dispute resolution. Some offer mediation or arbitration services – check with your provincial regulator for details.

What Are Common Reasons for Claim Delays?

Navigating home insurance claims in Canada can be challenging, especially when faced with delays or requests for additional information. Below are a few reasons you might experience a slowdown:

Incomplete paperwork:

Missing forms, unclear supporting documents, or incorrect details can halt a claim.

Supply chain and labour challenges:

Post-pandemic supply chain disruptions and labour shortages have extended the time required for property repairs, further delaying claim settlements. In 2021, the average time to settle a home insurance claim peaked at 138 days, up from 127 days in 2019.

High claim volumes:

Canada has witnessed a significant rise in climate-related catastrophes, leading to a surge in insurance claims. Over the last decade, insured losses from natural disasters have averaged $2.2 billion annually, a substantial increase from the previous decade’s average of $632 million.

Adjuster shortages:

The growing frequency of natural disasters has strained the capacity of insurance adjusters. 

Policy disputes:

If there’s any disagreement over coverage limits, exclusions, or endorsements, the investigation stage can drag on.

What Are Common Reasons for Claim Delays

Proactive Steps You Can Take During Delays

Despite your efforts, delays can happen, so it’s important to stay composed and take action. Keep records by tracking communication details and saving all correspondence. Provide evidence by submitting repair estimates, receipts, and photos to speed up the evaluation. 

Follow up regularly with your claims representative to check progress and remind them of your pending claim. If needed, seek expert help from a contractor or home inspector, as their report can strengthen your case. Taking these steps can help move your claim forward.

Seeking Legal and Regulatory Support

You don’t have to navigate a delayed claim alone. If prolonged delays or disputes arise, you can try some of these tips:

Contact provincial regulators:

Provincial regulators may step in to facilitate communication and make sure insurance companies follow regulations.

File a complaint:

Send a formal letter outlining the claim’s history, your insurer’s response, and any outstanding issues. Government agencies like the Office of the Superintendent of Financial Institutions (OSFI) (for federally regulated insurers) can provide guidance or direct you to the correct agency.

Seek legal counsel:

A lawyer or licensed insurance consultant can advise you on whether the delay is unreasonable and if legal action is warranted. Small claims court might be an option if the dispute amount is within provincial limits.

Key Advice From MyChoice

  • You have to organize documents and communications in one accessible place. Pro tip: An online drive allows flexible document access and helps minimize human error.
  • Carefully review your insurance policy to understand coverage limits, deductibles, and exclusions before filing a claim. If anything is unclear, contact your insurer to clarify timelines, required documentation, and the claims process to avoid surprises.
  • Regularly check in with your claims adjuster to ensure your file is being processed efficiently. Keeping open communication helps prevent unnecessary delays and allows you to address any missing information promptly.
  • Familiarize yourself with consumer protection laws and provincial insurance regulations to understand what insurers are required to do. If you feel your claim is being delayed unfairly, reach out to regulatory bodies or consumer advocacy groups for guidance.
  • If you believe your insurer is not treating you fairly, seek advice from a lawyer, insurance advocate, or financial expert. Professional guidance can help you navigate disputes, negotiate settlements, or take legal action if necessary.ificant capital expenditures or experienced a substantial increase in municipal taxes. These AGIs still need to be approved by the LTB; otherwise, the rent can only be increased by the guideline amount.

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