Even as first-responders continue to manage and control the wildfire situation in Fort McMurray, Alta., displaced residents continue to make a home in temporary accommodations that were set up in Edmonton, Calgary and throughout other, smaller Albertan towns. But as the situation stabilizes, questions are starting to pile up. Many are unsure as to whether or not they’ll be returning to a burned-out shell of a home. Most are unsure if they’ll even have a job to return to and the vast majority of these homeowners have never filed an insurance claim, let alone can remember the name of the insurance company that held their insurance policy.
To help, here are six steps to take if the wildfires have had a direct impact on you.
Step 1: There is no urgency, but emergency cash is available
Contacting your insurance provider is essential, but it’s not urgent. By calling or contacting your insurance provider, you are initiating a claim against your home insurance policy—a formal request asking for a payment based on the policy terms you agreed to and paid for. But there’s no urgency in calling your insurance provider, as your coverage won’t be terminated or be cancelled just because you wait a few days or weeks to call. Just know that the insurance companies can’t start a claim until they know damage has been done, explains Steve Kee, director of communications for the Insurance Bureau of Canada (IBC).
For many, though, there’s a lot of uncertainty as to who to call and when. Many homeowners fled with few belongings and even less have access to important documentation, such as their home insurance policy. In light of all this uncertainty, IBC set up hotlines to help all those affected by the Fort McMurray fires. By calling the toll-free number (1-877-227-5422) or emailing your questions or concerns (to FortMacFire@ibc.ca), IBC will help homeowners to track down their insurance policies and get details about their coverage.
Homeowners who already know who their insurance provider is should consider going in person to one of the 26 temporary sites that have been set up by various insurance providers throughout Edmonton and Lac la Biche. Even as the crisis was hitting its peak, many insurance companies were setting up temporary command posts and sending in catastrophe teams—also known as CAT teams or NCT teams, which is short for Catastrophe teams or Natural Catastrophe teams. The CAT teams are tasked with assessing the value of the loss for the more than 2,400 Fort McMurray structures that were damaged during the wildfires, while the temporary offices will help homeowners get necessary information about their claims.
Get emergency cash
Evacuees can also expect help from the Alberta government. Every displaced adult and child is eligible for a pre-loaded debit card—$1,25o to every displaced adult and $500 for every displaced child. The entire effort will cost the Alberta NDP government $100 million.
To find out if you qualify for this emergency provincial funding, go online or call 310-4455. Keep in mind that the Alberta government has asked that those not in dire need of the money to wait before making a claim. Since this money is to be used for short-term relief—to help people pay for immediate expenses, such as accommodation and food, while displaced from their homes—the government wants to make sure that those in extreme situations get help first.
As reported by the CBC, most of the money pledged by the Federal government will actually go to the Red Cross, to help out with the cost of providing emergency aid and relief. The Canadian Red Cross plans to start providing $600 per adult and $300 per child in aid.
Get prescriptions, for free
Pharmacists are dispensing urgent drugs for displaced residents after accessing patient records. If you don’t know who has your medication records, and you’re part of a Group Health Care plan, you can contact the IBC toll-free number (1-877-227-5422) for help. Once your patient records are verified, you will get access to prescriptions with the cost to be picked up by the Alberta government. For those that require medications, but can’t find their medical insurance information, many local Alberta pharmacies are waiving the need for regular customer insurance information. Talk to the pharmacist for more information.
Let people know you are safe
The provincial government and the Red Cross are asking that all evacuees register and continue to check-in with the Red Cross. Even if you’ve already registered with an evacuation centre, they are asking evacuees to check-in again. Go online to RedCross.ca or call 1-888-350-6070. As of early this week, 36,831 households had registered with the Red Cross. Family members and evacuees trying to reunite can also contact the Red Cross.
Get your ID
Those that had to evacuate their homes without important documents can get replacements, free of charge. Lost driver’s licences, birth certificates or ID cards will be reissued, free of charge, at any registry agent. The main service centre location in Edmonton is located at 9700 Jasper Avenue, while the Lac la Biche service centre can be found at 8702 91 Avenue (this location is only open until 3:30pm, local time). Click here to find more Alberta service centres.
Apply for Employment Insurance
For those facing a loss of employment, the Government of Canada is urging you to apply for Employment Insurance assistance, even if you do not have a Record of Employment. You will need your Social Insurance Number, but if you cannot remember your SIN, you’re still encouraged to apply. For online applications, you will be asked: Were you given a reference code to submit with this application? The answer is “yes” and you are asked to enter the following reference code: 4812012016030516.
You will need to provide a mailing and residential address to complete your application and for the Government to process it. For more information, go online.
Step 2: Track your evacuation expenses
Even if you haven’t called your insurance provider, remember to track your expenses. That means keeping a log of all money spent and keeping every receipt associated with your living expenses, while you’re displaced from your home.
While this might sound like a tiresome process, it’s necessary if you want to be reimbursed. That’s because many insurance policies come with additional living expense coverage, while some companies will even cut a cheque for those stranded in evacuation centres.
Get insurance company reimbursements
However, to be reimbursed through your insurance coverage, you will need to keep receipts. Bought a bottle of water at a gas station? Keep the receipt. Had to eat at restaurants during your five-day evacuation? Keep the receipts. Bought some clothes? Keep the receipts. While not every expense will be covered, the only chance you have of being reimbursed is whether or not you can produce a receipt.
Once the evacuation order is lifted, Fort McMurray and Lac la Biche residents will be allowed to return home to assess the damage. For some, their home may be inhabitable. If this turns out to be the case, most insurance providers will then pay additional funds—picking up the tab for all living expenses, such as rent and utilities, and reimbursing you for personal belongings that you require. The key is to track all expenses and keep all receipts, while waiting for your home to be rebuilt. Also, check in with your insurance provider frequently. For instance, before purchasing a big-ticket item, such as bed or paying for a rental vehicle, call to verify that the expense will be covered. Not all expenses will be reimbursed, as CBC reported earlier this week, when a mother of two, Florence Maeko, tried to claim her rental car cost from her insurance provider, The Cooperators.
Maeko and her sons ditched their SUV on the side of a road already littered with cars and trucks. Nearly a week later, they’re staying with friends in Edmonton. But Maeko said her insurance company, The Cooperators, won’t cover the cost of a rental vehicle unless she provides evidence the car she left behind is damaged.
Step 3: Talk to your bank
Evacuees that were still paying off mortgages before fleeing the burning Wood Buffalo region may be surprised to learn that even if they have no home to return to, they are still responsible for making those mortgage payments.
Insurance claim coverage won’t take over these payments, nor will insurance companies pay off other debt, such as car loans, personal lines of credit or credit card bills. But that doesn’t mean you can’t get help.
Help with mortgage payments
“The vast majority of mortgage lenders, from the big banks to the non-bank lenders, such as Street Capital, MCAP and First National, are letting people defer mortgage payments or allowing homeowners to re-amortize their payments,” explains Robert McLister, an independent mortgage broker and founder of RateSpy.com. While deferred, interest-only and re-amortization adds time and interest to your overall borrowing costs, it also allows borrowers some breathing room on their monthly bills, at a time when cash flow can be a challenge.
If you’re in the unfortunate position of having your mortgage come up for renewal this year, you may also be hit with the perfect storm: a devalued housing market in the Fort McMurray region, combined with no or low employment, combined with little personal equity in the home.
“It will be interesting to see what happens when home values start dropping and homeowners who put down only 5% or 10% to buy their home have to go and renegotiate a new mortgage term,” says McLister. Homeowners could find they have an underwater mortgage—meaning you owe your lender more than your home is worth.
An underwater mortgage can happen for a variety of reasons, but the most common is when a buyer puts down a relatively small down payment when purchasing a home only to have the home’s value decline.
If you think you may end up in this position, be proactive. Talk to your lender to discuss options to help you pay for your home. If that doesn’t help, talk to the Canada Mortgage and Housing Corporation (CMHC) or Genworth Canada. While mortgage loan insurance doesn’t protect you (it protects the banks, read more here), Genworth and CMHC are often quite proactive in trying to find solutions to help homeowners keep their homes, rather than defaulting. To see if you qualify for assistance use Genworth’s online tool.
Help with car and personal loan payments
Those dealing with car or personal loan payments should also talk to your bank. CIBC and RBC announced that it would help their Fort McMurray and Lac la Biche clients with “special financial considerations and assistance, including short-term payment deferrals on personal loans, home insurance, auto insurance and credit cards.”
Small business and commercial clients can also seek out help from their banks. Just go in and talk to a branch representative.
Step 4: Prepare for the claims process
Once you’ve called your insurance provider, started collecting your day-to-day living receipts and talked to your bank, the next step is to turn your attention to the insurance claim process.
On Mon. May 9, Fort McMurray fire chief Darby Allen said that officials were working to compile a list of homes that were lost or damaged in the fires. He also said that preliminary re-entry planning was underway. But there is still no date for re-entry, and Premier Rachel Notley is warning residents it could be some time before anyone is allowed to return.
But once you are, you’ll need to assess the damage done, as best you can. This doesn’t mean that the insurance provider won’t send out their own adjuster because they will. But this insurance representative, who is there to assess the amount of compensation that you should be paid, won’t necessarily appreciate all that was lost in your home. For that reason, it’s a good idea to use a digital camera or smartphone to record photos or video of the damage. Consider it evidence to prove your claim and document your loss.
(Keep in mind that home insurance will cover not only damage caused by fire, but also smoke damage and damage caused by wind, among other perils. To find out exactly what’s covered, read our insurance guide or talk to your insurance provider.)
Then begin to inventory everything that you lost. List everything that is missing or damaged. If possible, collect any pictures or receipts for items you bought. You could even ask family and friends if they have photos that you could use. A good trick is to imagine each room and then list everything you see in the room. Do this room by room, to help you remember all the items that were lost in your home.
Don’t make repairs until you’re given the thumbs up
Unless your insurance provider has specifically given you the thumbs up, avoid making repairs or cleaning up your property. Leave things as they are until your insurance adjuster has examined the site and authorized you to go in and clean up. (Some insurance providers offer discounts to homeowners who opt to clean up their own sites during catastrophic events. For clean-up tips, see: Home insurance clean up tips. However, never attempt a clean-up or repair unless authorized by your insurance provider. If you do, you could seriously injure yourself, others, or void your home insurance policy.)
Finally, be prepared to describe what happened in detail. While reliving the ordeal can prompt strong emotions, adjusters need to ask these questions, because your eye-witness account of what happened may be an important piece of the puzzle that will be used to determine your final insurance settlement.
While all this work may be emotionally and physically exhausting, keep in mind that by being prepared, your home insurance claim process can go much smoother, and this reduces the chance of problems in receiving the insurance money you deserve.
Step 5: Settle your claim
At some point, your insurance adjuster will offer you a settlement—the financial compensation that will be used to compensate your loss. For some, this may be a cash settlement—a lump sum that must be used to settle debts and start again. For most, it will mean rebuilding your damaged or destroyed home. (For tips on how to determine if your settlement is fair, read our previous post.)
Pay your deductible
During this process, your insurance company representative may mention that you’ll need to pay your deductible. Typically, the deductible will be deducted from your final settlement amount, but it’s a good idea to understand why and whether or not you can avoid this extra expense.
Your insurance policy comes with a deductible. A lump sum amount that is the portion you pay, out-of-pocket, for any claim you make on your homeowner or tenant’s insurance policy. The higher the deductible, the more you pay towards the claim or the cost of the repair.
However, some insurance providers will actually waive the deductible if your loss is over a certain amount (talk to your provider to see if you qualify), while other providers won’t ask you to pay the deductible if you’ve been claims-free up to this point. These companies use a disappearing deductible by applying a formula to your deductible that eventually decreases the amount paid out-of-pocket, until the portion you owe disappears entirely.
Step 6: How long will it take?
Now, the big question: How long will it take for the insurance provider to settle my claim? This really does depend on how severe and complex your claim is, and this is further compounded by the sheer volume of claims being filed at this time in the Fort McMurray area. While insurance providers will work hard to quickly process every claim, keep in mind that it will take time. Keep in touch with your insurance provider to find out their ongoing efforts to try and help ease the burden of waiting for your claim to be settled.
Also, be aware that every insurance company is a little different. The coverage you get from one insurance provider may differ from the coverage your neighbour gets. Just remember to keep the lines of communication open and, whenever possible, document all expenses and correspondence.
Pets need help, too
Of course, not everything is about emergency cash, living expenses and home insurance claims. Many displaced Wood Buffalo region residents are also grappling with various concerns while struggling to return to daily routines. For those concerned about pets, take heart. Starting May 7, emergency responders started to identify and care for pets that were left behind. Pets are being handled by trained animal handlers and will receive veterinary care. If you were separated from your pet and worried that your critter still needs to be rescued, fill out the official online emergency pet rescue request to allow a field team to respond.
If you want more information, or you want to help
Anyone with concerns or questions can always contact the Red Cross at their toll-free number: 1-888-350-6070
While donations of clothes and in-kind goods are appreciated, many aid agencies are asking Canadians who wish to help with the relief efforts to donate cash. Your cash donations go towards food, clothing, shelter and other necessities. You can make a donation, in-person, at any Red Cross office or text REDCROSS to 30333 to make a $5 donation.
For more on how to donate to the Fort McMurray wildfire relief efforts »
The Alberta and federal governments is matching donations made to the Red Cross. And remember, Rogers is waiving the cost of calls and texts to Fort McMurray to better connect customers with loved ones affected.
Anyone concerned about possible fraudulent online donation pages can contact the Red Cross directly.
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