The Complexities of Fire Claims That Most Business Owners Overlook

Apr 29
4 min read

If you have a brick-and-mortar business in Ontario, New Brunswick or Atlantic Canada, you know that day-to-day operations go much further than just doing business. You have to keep the place clean, have all permits and licenses, and have your insurance ready if needed. But do you also know what to do if you have to file a fire claim? What are the steps to do it correctly and get a fair payout?

Due to worsening weather conditions and other circumstantial hazards, fire and explosion have become the leading causes of commercial fire claims since 2023. So it is better to be safe than sorry and be prepared for the worst. But don’t worry, the good thing is that you don’t have to do it alone. We wrote today’s article to tell you everything about fire claims, from the most common overlooked complexities, tactics insurance companies in Ontario, New Brunswick and Atlantic Canada use to deny claims, and how to overcome them and get a fair settlement.

Fire Claims Go Further Than Just Burnt Property

The first thing business owners need to know when filing a fire claim is that the extent of fire damage goes further than burnt property or equipment. Other than replacement costs, you need to consider structural damage to the property that might not be apparent at first glance, damage to personal property caused by the fire, specialized cleanup costs, and, probably most important, business interruption due to the fire.

When you are a victim of a fire or explosion, you are not only losing what was burnt in the event, but every day that your business stays closed is money you are losing from sales you are not making. This is one of the things we see most businesspeople overlook. That’s why it is crucial to check whether this is covered by your insurance policy and to include it when filing your fire damage claim.

On the bright side, you can always contact a public adjusting firm to help you understand your policy and your options to file for business interruption. Expert help can always get you further along in the claim process while you focus on resuming business operations.

How Do Insurers Deny and Delay Fire Claims

In theory, when you take out commercial insurance, you expect the insurer to have your back if the worst were to happen, right?

Unfortunately, on many occasions, dealing with insurance companies is more of a headache than an easy ride. Their financial interests do not align with giving clients easy, fair settlements. So more often than not, they use specific tactics to underpay fire claims or outright deny them. Here are some of the most common ones:

Policy Exclusions: Your insurance may claim that the cause of the fire or the type of damage isn’t covered under your policy.
Incomplete Documentation: Missing receipts, estimates, or proof of ownership can weaken your claim and result in a lower settlement than you deserve.
Delayed Reporting: Waiting too long to notify the insurance company can raise doubts about the cause or extent of the damage.
Alleged Negligence: Claims can be rejected if insurers believe you failed to maintain safety standards or fire prevention systems, such as having sprinklers or extinguishers on site.

Many of these strategies are effective because insurance companies have the upper hand when it comes to policies and laws. However, this doesn’t have to be the case. At ClearClaim, we are licensed public adjusters who are experts in the legal jargon used in policies. We are the right experts to level the playing field when filing your fire claim in Ontario, New Brunswick, and Atlantic Canada.

Strategic Tips for Maximizing Fire Claims

When filing your fire damage claim, there are some tips you can follow to make it easier to deal with your insurance firm. These will give your claim a stronger foundation, making it easier to approve and pay faster.

Document everything thoroughly. Capture photos, videos, and detailed inventories of all damaged property. If you have proof of the items' value, the better.
Track every expense. Record temporary repairs, relocation costs, and lost business income. This will help you know how much should be included in a fair settlement
Maintain consistent communication records with your insurer, including emails, letters, and call logs. Also, meet all deadlines to avoid delayed payments or claim denial.
Hire independent, professional contractors to provide accurate damage estimates
Work with an expert claim adjuster to carefully review your policy. It is crucial to understand limits, exclusions, and timelines before submitting documents.

The Bottom Line

Commercial fire losses are complex and involve so much more than burnt property. They can include structural damage, require specialized cleanup services, and most likely will interrupt business operations to a significant degree.

Having insurance is a good first step, but when insurers often delay or deny claims, expert help from a local public adjuster is the best way to go. Licensed claim adjusters can help you navigate the claim process, understand your policy clearly, and negotiate with the insurer for a fair settlement on your behalf. All so you can focus on getting your business back up and running.

Need an Expert in Fire Claims in Ontario, New Brunswick and Atalantic Canada?

Whether you are dealing with smoke damage, structural loss, or a total property fire, having the right support can make all the difference.

Here at ClearClaim, we are public adjusters with a 98% success rate and more than $50 million in paid settlements. We are confident we can build your case and get you the settlement you deserve.