INSURER’S RIGHTS & OBLIGATIONS

Basis of Claim Payment-Dwelling

After loss or damage has been reported to an insurer the insurer has an obligation to furnish you with a Proof of Loss. Your insurer has an obligation to act with utmost good faith when handling your first party loss. In addition to being fair and handling your claim with honesty your insurer has an obligation to promptly process payment of your claim especially when they elect not to follow the claims process as outlined within your contract.

After loss or damage has been reported to an insurer the insurer has the immediate right of access to the property so they can engage the services of qualified experts to assist them in estimating the amount of loss or damage.

Also, after the property has been secured by the insured the insurer has a further right of access to the property to estimate the amount of loss or damage.

After a Proof of Loss has been delivered to the insurer and before they respond to the claim asserted in the Proof of Loss the insurer may request further access to the property. The Courts seem to allow the insurer their right of access at this stage.

Sometimes after the insurer has responded to the claim asserted in the Proof of Loss and the insurer has created a dispute, the insurer requests further access to the property. It is questionable if the insurer truly has a further right of access at this stage. However, in some cases the insurer may want access bad enough that they will threaten and/or demand access by way of a Court Motion. We consider this type of action to be bully tactics. These type of tactics are used by few in the industry.

Sometimes insurers request further access to the property after Appraisal/Dispute Resolution has been invoked as the insurer’s Appraiser wants to readjust the claim in an effort to gather additional evidence to support the position taken by the insurer and/or attempt to reduce the insurer’s exposure to your claim for loss or damage. Again, in some cases the insurer may want access bad enough that they will threaten and/or demand access by way of a Court Motion. We consider this type of action to be bully tactics. These type of tactics are used by the few in the industry.

Contact us should you have any questions or concerns. Become a member of Indemnity Canada so we can educate you further and get you prepared in case you suffer a loss. Also, as a member we will review your current policy so we can educate you on the coverages you purchased.