Experiencing fire or smoke damage is dreadful, especially in the place you call home. Your property, furniture, personal belongings and irreplaceable family heirlooms become engulfed in flames, never to be seen again.

After a fire takes place, Canadian homeowners will generally file what's known as a fire claim. However, did you know that coverage isn't always guaranteed in the event of a fire?

What is a fire claim?

First things first, what exactly are fire insurance claims, and how do they help protect homeowners?

A fire claim is a series of documents that states the event, how it took place, and the cost of the damaged property.

If accepted, the homeowner will receive the financial aid requested in the claim. The money the homeowner receives is equivalent to the actual cash value of the property. Homeowners use the money that they receive to repair or rebuild their homes.

Most home insurance policies cover both fire and smoke damage; however, if you're unsure, we suggest that you double-check with your insurance agent.

Five common reasons insurance companies deny fire claims in Canada

As mentioned above, house fire insurance claims aren't guaranteed to be accepted by your provider.

Was your fire claim recently denied, and you're unsure why? If so, it may be related to one of the factors listed below:

Misrepresentation

If your fire claim gets denied, it may have to do with the misrepresentation of information.

Misrepresentation is the act of lying about or omitting invaluable information regarding your fire claim.

For instance, imagine a homeowner recently installed a sunroom with eastern-facing glass windows. The homeowner placed old, dying plants in the sunroom — over time, the sun's rays were magnified by the glass windows, causing the plants to catch fire and damage the home.

If the homeowner lies to their insurance company about the source of the fire (potentially out of fear that they'll be deemed at fault), and the provider finds out, the fire claim will get denied. This leaves the homeowner with no other choice but to pay for all of the damage out of pocket.

This is an example of why we suggest you should always be honest and upfront with your insurance provider.

Arson

Arson is a severe accusation that we don't take lightly. Arson is the act of lighting personal or public property on fire. Occasionally, arson is used as a mode of revenge or for monetary gain.

In Canada, arson is considered a criminal offence; anyone found guilty of this federal offence can face a maximum of 10 years in prison.

If your insurance learns that you've committed arson, your fire insurance claim will be swiftly denied. 

Illegal activities

If, after making a fire claim, it becomes apparent that your property was involved with illegal activities, your claim will likely get denied.

Although several activities are considered illegal, one of the most common examples is the manufacturing and selling of illicit substances (drugs, alcohol, etc.) in an unauthorized location.

Lack of proof

During the fire insurance claim process, the homeowner is responsible for documenting the value of their property, belongings and everything else they had insured.

However, if the homeowner cannot verify these prices, it's unlikely that they'll receive the compensation they expected.

Unpermitted electrical work

Homeowners are responsible for maintaining and repairing issues around their properties, including electrical work. Failing to maintain the electrical work in your home can influence the outcome of your fire claim.

Additionally, any future fire claims will likely be denied if a homeowner attempts to fix the issue without the necessary permits or inspections. This is particularly true if the DIY electrical work causes the fire.

Because of this, you can see why you should always get your electrical work done by a licensed, trained professional that you can trust.

What can you do if your fire claim gets denied?

As a policyholder, you have the right to challenge your insurance provider's decision regarding your fire claim.

When you do this, you're requesting that your insurance provider reassess their decision. If your request is validated, your insurance company will thoroughly review all factors that influenced their previous decision. 

Throughout this time, your insurance provider will act as quickly as possible, especially during time-sensitive situations.

If your insurance company finds that they overlooked a particular factor, the homeowner may be eligible for compensation. However, if the insurance company comes to the same conclusion, the fire claim's status will remain denied.

Homeowners that are not content with this outcome can consider acquiring legal aid.

How to prevent future fire claims from getting denied

There are several ways you can minimize the likelihood of your fire claim getting denied. If you're having trouble thinking of ideas, feel free to utilize these valuable tips:

Fill out the paperwork correctly and efficiently

One of the most critical parts of filing a fire claim is ensuring that you've done everything correctly. Accidentally forgetting to add a vital cost, quote, or other information can negatively influence the outcome of the fire claim.

Whatsmore, you must file the fire claim quickly. Moseying through the process makes it difficult for your insurance company to assess the situation efficiently.

Review your home insurance policy

If you're unsure of what risks and perils (an insurance term for unavoidable or unforeseeable incidents) are covered by your policy, feel free to go over your coverage with your agent. Your insurance agent will be happy to give you a better understanding of your policy.

Not to mention, your insurance agent can walk you through the fire claim-making process, making it easier for you to tackle if, or when, the time comes.

Additional coverage

If your home insurance policy doesn’t currently cover flame and smoke damage, you can’t file a claim in the event of a fire. If you want financial coverage in the future, you'll want to add fire and smoke damage to your policy.

Ensure that future fire claims don't get denied

Now that you know the ins and outs of filing a fire claim, you can go about the process confidently and knowledgeably.