As severe weather events become more frequent across Canada, insurance professionals are reminding homeowners of a lesser-known, yet important, aspect of their home insurance policies: the duty to prevent further damage following a loss.
According to the Insurance Bureau of Canada, while many assume their role ends once they purchase a policy, most home insurance contracts include clauses requiring policyholders to take “reasonable steps” to limit additional damage after an incident such as a storm, flood or fire.
This condition exists in most standard policies and can play a role in how claims are assessed, the IBC said. For example, if wind damages a roof, homeowners are expected to cover the exposed area with a tarp.
Similarly, in the case of a flooded basement, moving belongings to a higher floor could help limit losses. Other examples include covering broken windows to prevent further water intrusion or sealing damaged vents with plastic or weatherproof tape.
The condition is rooted in the idea that both insurer and policyholder share responsibility for managing a loss. Taking steps to contain damage may help reduce the overall claim amount and support faster resolution, the IBC said.
If these efforts involve out-of-pocket expenses, such as buying materials or renting equipment, many policies state that the insurer will reimburse reasonable costs.
Insurers also recommend that homeowners contact them quickly after a loss. In cases where mitigation work is beyond the homeowner’s capacity, insurers may be able to recommend contractors or emergency restoration professionals.
However, failure to act could affect the outcome of a claim. If an insurer determines that additional damage occurred because no effort was made to prevent it, that portion of the loss may not be fully covered.
Insurance experts also advise reviewing policy wording carefully and asking questions if anything is unclear. Understanding the terms of a policy, including conditions such as the duty to mitigate, can help avoid complications and ensure smoother claims handling when severe weather strikes.
