Insurers urge claims professionals to pitch resilience to Canadians

Insurers are beginning to offer incentives for homeowners to build back better after a loss, but they need help from claims professionals — including independent adjusters and restoration contractors — to explain the value of resiliency to insureds, experts at the Canadian Independent Adjusters’ Association (CIAA) Canadian Claims Summit said Friday. 

“There are a few insurers that actually offer the opportunity to build back better or [use] more resilient materials. It is still a new idea,” said Isabelle Babineau, vice president of strategic accounts at Paul Davis Restoration. “From my experience, they are offering one-time fees or a one-time bump in what their max allowance would be if [policyholders] are building back with more resilient materials, such as roofing — going from [standard] shingles to a higher-tab shingle or a metal roof as well.” 

Insurers have spoken about the complexities of rebuilding homes after a natural catastrophe loss. Some insurers are concerned that if they rebuild a home to higher resilience standards, the homeowner may move their business elsewhere during a competitive market, leaving the carrier without the long-term benefit of the property’s improved resilience. 

But that needle might be shifting. 

“We are seeing insurers change, and of course, once one insurer does it, the other ones will follow,” says Roger Leclerc, Cat manager at Laurin Adjusters. 

There is an opportunity for adjusters or restoration contractors to draw insureds’ attention to the provisions in their insurance contracts, which may include an option to be compensated for building back better, he says. 

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“It’s up to the adjusters to say, ‘Hey, look, this is available to you guys,’” he said. “As insurance adjusters…a lot of times we get too busy, or we have too many claims and we forget to tell people what they have.” 

Since resilient materials often have a more substantial upfront cost, insureds often require education about the long-term benefits of resiliency. And industry professionals are the ones who must drive that point home for insureds, said Babineau. 

“It would also be on us to educate the homeowners on the different materials that they could use,” she said. “We just need to educate the homeowners on available products, and how they might help.” 

Plus, as the country continues to develop new properties rapidly, regulators must also step up to provide insureds with guidance on building in high-risk areas. 

“The one thing that’s missing is that the regulators have to be at the table,” said Javier Ibanez, director of sales and marketing at Accomsure. “It’s got to be the regulators as well, because then that will make a material change. That’ll be the tipping point where, instead of it being an option on a policy that you’re being sold, it’s the city bylaw.” 

Alyssa DiSabatino

Alyssa Di Sabatino has been a reporter for Canadian Underwriter since 2021, covering industry trends, market developments, and emerging risks.