Emergency Preparedness

March 21, 2025 Published by Huronia Chapter - By Sandy Fantino, Anthony (Tony) Esposito

When Disaster Strikes, Good Relationships Can Save The Day

From the CCI Huronia Winter/Spring 2025 Condo Buzz Newsletter

Whether it's the foothills of Alberta, southern Ontario or the Atlantic provinces, we’ve seen the news reports of devastating fires, floods, and other natural disasters like hailstorms up-ending people’s lives.

Thankfully, many of the natural catastrophes that have hit Canada have not resulted in a significant loss of life, but homes, possessions and livelihoods are lost, and lives are often changed forever. According to the Insurance Bureau of Canada, insured damage caused by severe weather topped $8 billion in 2024.

When disaster strikes, we take a collective breath of relief knowing that victims have insurance. But what is involved in the claims process when a natural disaster occurs? How long does it take to settle a claim? How does the process differ from disaster to disaster?

After they have called their insurance company, the first thing homeowners need to arrange is for accommodation and immediate care. An itemized account should be submitted once the damage to their property is confirmed. Some policies provide initial limited advance coverage for shelter before being completed but this differs from policy to policy.

The hardest thing for people who have lived through a catastrophic loss to realize is that they will likely not have access to their neighbourhood and home. They are understandably upset as they are displaced and become quite perturbed when they can’t view their property.

Having worked in these challenging situations, there are always more questions than there are answers. While most insurers (and brokers) have catastrophe plans in place, there are many variables that need to be considered before the claim can be settled.

In our experience, the most consequential question Client’s face is, “are we going to rebuild?” The idea of accepting an actual cash value settlement can be tempting. However, in our experience, people who can rebuild have done so.

The decision to rebuild is influenced by the severity of the damage, but once made, the process is much smoother if the adjuster has strong personal relationships with a network of skilled trades and suppliers. Rebuilding will become more challenging when working with vendors and tradespeople from other regions who may not know the local marketplace. These factors play a role in determining the length of time it will take to complete a claim.

Managing the risk

Preparation is key to prevent damages from occurring in the first place. In Ontario, we face threats from storms and water damage. Keeping entrance ways and drainage clear of debris is critical.

Construction on flood prone areas should be avoided. Consideration should be given to building barriers to protect low lying properties. Condos at risk from wildfires should have a fire break and gutters kept clear of any foliage that could ignite. Although rare, earthquakes are another threat, and buildings should be built or upgraded to withstand seismic activity.

Sandy Fantino & Anthony (Tony) Esposito
BFL CANADA