Home Insurance Cancelled without Notice

by Kevin M
(Otttawa)

Hi,


I recently had a flood on my property, the insurance company was called and they sent an emergency restoration team out to suck the water out and remove all contents from the basement.

I was waiting for an adjuster to call a few days later, and instead got a call from the brokerage saying that in January they had sent a registered letter saying that due to a missed payment (banking oversight, 80$ payment) they had cancelled our policy in January and we are no longer covered.

Now, my wife didn't notice the missed payment and the insurance representative said they sent a registered letter, which was never signed for.

So they took all my stuff and called me and said "too bad so sad, you aren't covered"

Any advice appreciated

What To Do About a Cancelled Policy and Denied Claim


Hi Kevin,

That's a real tough situation. I don't know if you have any recourse at all. The insurer is supposed to notify you by registered mail. Not sure if it matters that you didn't sign for it.

Your only recourse is likely to take legal action.

Sorry to say it.

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Jul 15, 2016
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Home Insurance NEW
by: Anonymous

Received a letter general mail to my mail box from my home insurance to cancel my policy , due to not replacing the roof shingles which they requested in January in Canada (lol) , had asked for an extension to get it done as I have a crazy roof with lots of peaks and its costly , and needed more time to save money , they denied the extension . Is it by law they had to send it by registered mail ? And I got a new policy with a new company set up already for Aug 31 when this is done , how much trouble will I be in if I put a stop payment on the last payment ? ( I'm mad ) As I had to pay already to set up the new insurance and I'm on a tight budget ...

Sep 15, 2015
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My house got water damaged
by: Geri

Hi mov 27 the pipes busted on two floors of the house, it took 26 weeks to get help due to that fact my broker sold my policy to another Insurance company and wasn't aware of the change, when reported in Nov no one knew Where my policy was , it took 16 weeks (April 2015 ) to get help, I was encouraged t I take the cadh pay out and fix everything myself, We are finding more hidden damage with black mould within the walls and the amount they gave me isn't going to be enough, I need a lawyer to help me, where can I find one that does insurance claims? I haven't signed any papers yet to close the claim, I am from Edmonton Alta, please advise if I have a case for more help or does it come out of my pocket, thanks

Jun 13, 2012
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Registered letter doesn't have to be recieved for it to be effective.
by: Anonymous

When insurance company send out the letter of cancellation, it has to be through registered mail. And as soon as the letter is recieved from the post office, the 15 days of notice will start. Whether or not you have recieved it and signed for it, it doesn't matter. If the letter is send back to the insurance company unopened they still have the right to cancel your policy. But before they decide to send out a letter of cancellation they will need to notify your broker of such decision. And in your case your broker should have notified you. If you read your insurance policy under the statutory condtion it will explain how an insurance company can cancel your policy.

Jun 16, 2011
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Anonymous is wrong
by: Anonymous

If the notice for a reg'd letter was sent, and not picked up or signed for it would be returned to the ins company.
They legally only have to send it and can verify that because they keep the returned letter on file unopened.

If this was done, then I am afraid you are too. No legal grounds to do anything.

May 10, 2011
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Broker
by: Anonymous

with the registered letter not signed. you have an upper hand. try calling them and make a fuss saying its not your job send the letters to you and to have you sign them. they send them registered for a reason. if its not signed and they continue to give you a hard time, then call a lawyer. you will more then likely win this case as its the insurance companies duty to inform you in time. they did not.

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Note: Always speak with a licensed insurance professional about your specific situation. This insurance information is general in nature and the policy wordings always take precedence. It is possible that there are errors and omissions in this website and www.canada-insurance-source.com, or its authors, take no responsibility.

Keep in mind that insurance licensing, legislation, and policies often vary by province and most certainly by country. Canada Insurance Source is a free information source. So use this site to gain a general understanding of insurance with your own area and situation in mind.  Make sure you review the "please read" page. Always speak with a licensed insurance professional about your specific situation.

Always speak with a licensed insurance representative about your specific situation.

This site is general in nature and there may be errors or ommissions

Please Read

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