The why and how of reporting a loss and filing a claim with your insurer

It’s a known fact that when minor damage occurs, many people are reluctant to report it to their insurer. Between the fear of higher premiums and the feeling that it’s not worth the hassle for a small amount of damage, lots of people might decide to do the repairs themselves and never report the incident to their insurer. 

But that can have serious legal and financial consequences, especially if you ever need to make a claim in the future. Why is it so important to report everything, even minor losses? And what’s the process for making an insurance claim? Read on for the answers.

Report and claim: Two key terms not to be confused

First of all, it’s important to understand the difference between “report” and “claim” for insurance purposes.

Reporting a claim is simply informing your insurer that something has happened. This allows you to update your information and modify your insurance policy, if necessary. For example, if your car is damaged or if you have water damage in your home, reporting it creates an official record in your file, even if you are not asking for compensation.

Important: As stated in your insurance policy, pursuant to Article 2470 of the Civil Code of Québec you must report to your insurer any loss that may be covered by your policy as soon as you are aware of it, even if you do not file a claim. This means you are required by law to report any loss to your insured property, whether minor or major, and any damage you may have caused to others. 

Filing a claim, however, means that you are asking your insurer to compensate you for damage incurred under the terms of your policy. This usually involves a damage assessment by a claims adjuster, who will determine how much compensation you’re entitled to. 

Good to know: The decision whether file a claim with your insurer is up to you. It’s not mandatory. 

Why report a claim, even a minor one?

By law, anyone who is insured must notify their insurer as soon as they become aware of a loss that may be covered by their insurance policy. Why is this such an important step? Here is a situation that illustrate the consequences of not reporting a loss. 

Your insurer could deny your claim
Your insurance policy is designed to protect you from the unexpected. However, if a loss is not reported within the timeframe set out in your policy and you go on to file a claim later, your insurance company could refuse to pay out, on the basis that it didn’t have access to certain key facts at the time of the loss.
Specific example:
Let’s say you have some minor water damage in your bathroom. You repair the damage yourself, without notifying your insurer. Then mould starts to grow in the walls. Several months later another water damage incident occurs, and you decide to file a claim with your insurer for this second event. During the damage assessment, the claims adjuster found that mould from the first unreported incident had made things worse. So your insurer might not compensate you for repairs needed due to the worsening situation. 
As this example illustrates, it’s important to report a loss, however minor, to avoid a claim being denied later on. 

The big advantage of understanding your insurance policy

When you read your insurance policy, you’ll realize that there is a whole set of vocabulary specific to insurance. Here are some important terms defined in the insurance dictionary: 
Deductible 
The amount specified in your policy that you are responsible for when you’re compensated for a loss. Your premium varies depending on your deductible. If you have a high deductible, your insurance premium will be lower, and vice versa. For minor damage, it can sometimes be more advantageous to manage the repairs yourself if you have a high deductible. That said, you should still report the incident to your insurer! 
Endorsement (or rider) 
This is an additional clause in your policy that modifies your coverage. For example, an amendment could cover specific assets or protect your property against specific risks that are not covered in your basic policy. 
Exclusion 
Your insurance policy has exclusions. As a result, certain losses or types of damage are not covered. Others are only covered in certain situations. To avoid unpleasant surprises when you file a claim, make sure you know what these exclusions are.
General provisions 
The general provisions of your insurance policy summarize key information about the rights and obligations of the insured and the insurer, such as the obligation to report every loss to your insurer. Per the general provisions, certain types of coverage are only valid if you meet specific conditions. And if you make a claim for a covered loss, your insurer is required to pay out within a certain period. 

Take the time to read your insurance policy and learn about your coverage, exclusions, conditions, and limitations. And if you still have questions, don’t hesitate to contact your damage insurance representative.

How to file a claim

The claims process is designed to be flexible and tailored to each situation. There is no one-size-fits-all procedure, but these are the key steps to follow to report a loss and file a claim with your insurer. The sequence might vary, depending on the situation.

Make sure you are safe 
Get to a safe place. If you are injured or in danger, call 9-1-1 immediately. 

Contact your insurer or file a claim online 
It’s important to notify your insurer of the loss as soon as possible. To file a claim with Promutuel Insurance, you have two options:
•    By phone: you can speak directly to an insurance agent who will guide you through the process.
•    In your Client Space: for minor losses and common incidents, you can initiate a claim online, in just a few clicks.

Limit the damage 
Per your insurance policy, it is your responsibility to limit the damage and stop things from getting worse—by drying out walls and floors after water damage, for example. But don’t do any permanent repairs without your insurer’s approval! 

Gather all the required information
To process your claim, your insurer will need certain documents and all relevant information. Be ready to provide the following: 
•    A detailed description of the loss (date, circumstances, etc.)
•    A police report or a joint accident report, if applicable 
•    Photos or evidence of the damage
•    Copies of invoices or receipts for damaged property
Tip: We recommend making an inventory of your property and updating it frequently. For home insurance, an inventory will help you keep the insurance amount on your policy up to date so you can be compensated appropriately in the event of a loss. 

Cooperate with your claims adjuster
To settle your claim, your insurer will hire a claims adjuster. This person will investigate the cause of the loss, determine whether your loss is covered, estimate the amount of the damage, and negotiate the settlement with you. Your adjuster will support you throughout the claims process and explain how it works. As for you, you have a responsibility to cooperate with the adjuster, which can help reduce the time it takes to process your claim.
Is your home damaged after a loss? Unsure what to do? We’ve put together the key steps of a home insurance claim to guide you.
 

What you need to know 

Reporting a loss, even a minor one, is a crucial step in making sure your claim won’t be denied. You also have a responsibility to limit the damage and cooperate with your insurer or the claims adjuster by providing them with the information and paperwork they ask for. That way, you’ll avoid unpleasant surprises when you file a claim, and your case will be processed faster. 
 

Have questions about your coverage or want to file a claim? Don’t wait to contact one of our damage insurance representatives or log in to your Client Space!