When it comes to residential property insurance there are two forms of coverage when it comes to causation. Some policies offer coverage on a Named Perils basis while others offer All Risk coverage.
Named perils coverage is as it sounds, there is specific causes of loss that are covered. In order for your policy to afford coverage to the loss or damage the loss must be caused by one of the Named perils. However, Named perils policies may contain some exclusions within the named peril so you need to ensure you understand the coverage offered before you report the claim.
All risk policies offer a broader scope of coverage. Basically the policy affords coverage to all type of loss except for those losses that are specifically excluded.
Agreements are a two-way street: while coverage under an insurance policy is to be interpreted generously as a matter of public policy, the Court will not favour an interpretation that amounts to ignoring the terms and wording of a policy. To that end, it is very important you understand what type of coverage you purchased and the limitations to that coverage.
If your insurer were to deny coverage to your claim you would have to start an Action to have that issue addressed by the Courts. If there is a dispute when it comes to the amount of the loss or damage whether
coverage applies or not you could elect to have that dispute resolved by Appraisal.
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.