Case study
It is Services-O-Sinistrés’ duty to inform you that you can receive what is rightfully yours, have your interests protected and have access to resources that can help you. Here are some case studies that could clarify and help you with your own settlement claim.
Emergency work assigned by the insurance company
Nowadays, a vast majority of claims are linked to natural disasters, rain water damage, brown water from drainage systems and/or surface water running in French drains and/or holding ponds, and black water from sewage systems.
Most insurance companies have changed their coverage policy regarding these risks. Indeed, they have segmented the risk of earth water damage with a restricted coverage through policy endorsement. Therefore, risks of aboveground water damage, i.e. rainfall infiltration through the roof, and/or through openings in the building, through doors or windows are excluded.
Following a natural disaster, an insured person with appropriate coverage normally calls his or her insurance company for immediate assistance. The insurance company then proceeds to refer a disaster recovery contractor with whom it has a contract with pre-determined costs.
Said contractors do not know the details of your insurance policy. They only care about the amount you pay as a deductible on your insurance contract. They ask you to sign an agreement that allows them to start working on your building, along with an assignment of claim, which allows the insurance company to pay the contractor’s fees directly.
The assignment of claim, once signed by the insured, is a legal document given to the contractor providing you with an emergency service to have his fees paid in priority by the insurance company. However, as mentioned above, the endorsements limit water damage coverage.
Know that you have a right of recourse
Such emergency work can match your policy endorsement. However, you must know, as an insured, that you have rights. If the fees requested by the disaster recovery contractor seem too high, the contractor referred by your insurance company has the same obligations as an itinerant seller, under sections 55, 58 and 59 of the LPC (Loi sur la protection du consommateur).
Under the chairmanship of the Honorable Gilles Charpentier, J.P.C., a judgment of the Quebec court “small claims division”, Multi pro Plus v. Karine d’Amours, Saint-Hyacinthe district, case no. 750-32-010776-121, Judge Charpentier pleaded in favor of the insured and significantly lowered the fees of the disaster recovery contractor.
The disaster recovery contractor has the obligation to reveal all costs before beginning emergency work or any other type of construction work. The client has the right to know all costs before the beginning of the work and the client can accept and/or decline the procedure.
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