parents home insurance cancelled

by Devon O
(Toronto, Ontario)

My parents live in a bungalow built in 1959. The house had it wiring and electrical panel upgraded and minor repairs made to it throughout their stay but have never renovated the interior. My father has Alzheimer's and my mother is his primary caregiver. There has been minor flooding in the basement but no cracks in the foundation wall. Recently, after a major rainfall they called their insurance agent in to inspect the house because they were worried about water damage. The agent came in and accused them of not maintaining the home, had a contractor come in and state that the house was structurally unstable and canceled their insurance policy. Now they are on their database and no insurer will look at them. I am a professional engineer and had a professional contractor examine the house and neither of us could find any structural faults outside of a minor support beam that could easily be fixed (the previous worker had not placed a plastic barrier between the beam and cement floor). Our problem is that the insurer gave no notice of repairs needed, no detailed explanation and simply canceled the policy. My parents are old (78, 82) and this has upset them greatly as they now worry that their beloved home is going to fall down. I have assured them that will not happen but can get no answers from the investigator or contractor who saw the house; they came when there was only my mother and father at home. I'm sorry for this long letter but I am extremely frustrated.


Canceled Home Insurance Policy


Hi Devon
Your frustration is understandable.

It's fairly easy for a home insurance company to cancel a policy due to "underwriting reasons". This is a way to put it vaguely in a registered letter.

The attempted claim will be on a database accessible by other home insurers. But the cancellation won't be.

Other insurers will look at insuring the home once the problem is fixed. No insurer wants to take a "bad risk", and your parents place will be considered as such until the repairs are made.

If your parents were with this company for a long time, it is very disappointing that they weren't given time to remedy the situation.

Regardless, you might wish to complain the company's ombudsman about this situation.

Start making some calls on Monday and see what you can do.

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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

Compare insurance quotes through Kanetix.ca - save time and money!