Points
Have You Made Any of These Mistakes?
Most homeowners only open their insurance policy when something goes wrong.
By then, it's too late to fix the gaps.
After more than two decades of helping North Okanagan homeowners recover from floods, fires, and unexpected disasters, our team at Total Restoration Services has seen a far too many painful lessons.
The financial pain of a home emergency isn't always caused by the damage itself — it's caused by the insurance surprises that come with it. Here are the ten most common mistakes we see, and how to avoid them.
Assuming "flood" and "water damage" mean the same thing
This is the one that surprises homeowners the most. Standard home insurance policies typically cover sudden and accidental water damage — a burst pipe, an overflowing appliance, a roof leak. But flooding — defined as water rising from an external source like a river, lake, or heavy rainfall overwhelming a storm drain — is almost always excluded. If your basement fills during the spring thaw from groundwater or an overland flow, your standard policy may not pay a cent. Separate overland flood coverage is available, and if you live near water or in a low-lying area of the Okanagan, it's worth a serious look.
What to do
Call your broker and specifically ask the following : "Do I have overland flood coverage and sewer backup coverage?" Don't assume — ask, and have them show you the verbiage in your policy that covers flooding/water damage.
Not reading your policy until disaster strikes
Your insurance policy is a legal contract, and most people sign it without reading past the premium amount. Buried in the fine print are exclusions, conditions, and requirements that can determine whether your claim is paid in full, paid partially, or denied entirely. You don't need to read it like a lawyer, but you do need to understand the key sections: what's covered, what's excluded, what your deductible is, and what's required of you when you file a claim.
What to do
Set aside an hour to read your policy summary — not the full document, but at minimum the coverage summary and exclusions page. Ask your broker to walk you through anything confusing.
Waiting too long to report damage
When damage happens, it's tempting to assess the situation yourself, try a few DIY fixes, or simply put off the uncomfortable task of calling your insurer. This can seriously jeopardize your claim. Most policies require "prompt" notification, and what feels like a few days to you may look like negligence to an adjuster. Delayed reporting also means delayed drying — and mold can begin forming within 24 to 48 hours of water intrusion. Waiting allows secondary damage to compound, which can complicate your claim further.
What to do
Report the loss to your insurer the same day it occurs or is discovered. Then call a restoration company to begin emergency mitigation — your policy typically covers this regardless of what else is under dispute.
Cleaning up before documenting the damage
We understand the instinct — you want to protect your home and your belongings, and cleaning up feels like taking action. But insurance claims run on evidence. Once you've thrown out the damaged drywall or cleared the wet contents, it's very difficult to prove the extent of what was lost. Your adjuster needs to see the damage in its original state, and so does any restoration company working alongside your claim.
What to do
Before touching anything: photograph and video everything. Take wide shots of entire rooms, then close-ups of specific damage. Only begin cleanup after you have documentation — or once an adjuster has completed their initial assessment.
Not maintaining your home — or keeping records of it
Insurance is designed to cover sudden, unexpected losses — not gradual deterioration from neglect. If your adjuster determines that the damage resulted from deferred maintenance (a roof that hasn't been inspected in years, a sump pump that was never serviced, persistent moisture that was ignored), they may deny part or all of your claim. Even if your home is well-maintained, a lack of records makes it difficult to defend your position.
What to do
Keep a simple home maintenance log. Save receipts for inspections, repairs, and professional services. A basic spreadsheet or even a folder of photos with dates is enough to establish a pattern of care.
Letting your policy auto-renew without an annual review
Life changes. Renovation costs go up. You finish the basement. You add a deck. You bring home a dog or start renting out a suite. Each of these can affect your coverage needs — and if your policy doesn't reflect your current situation, you may find yourself underinsured precisely when you need protection most. Many homeowners sign their first policy and never revisit it. Years pass, and the coverage quietly becomes inadequate.
What to do
Schedule a 30-minute annual review with your broker — ideally before renewal. Share any significant changes to your home, property, or lifestyle. It's also a good time to shop rates.
Not understanding your deductible
A deductible is the amount you pay out-of-pocket before insurance kicks in. Sounds simple — but many homeowners discover mid-claim that their deductible is higher than they remembered, or that different perils carry different deductibles (some policies have separate, higher deductibles for earthquakes, sewer backup, or wind events). Being surprised by a $5,000 deductible when you were expecting $1,000 can turn a manageable situation into a stressful one.
What to do
Know your deductible before you need it. Check whether different coverage categories carry different deductibles so you can factor this into your emergency savings planning.
Carrying inadequate dwelling coverage
Construction costs across British Columbia have risen dramatically over the past several years. If your policy was set up when building materials and labour were significantly cheaper, your dwelling coverage limit — the amount your insurer will pay to rebuild your home — may no longer reflect what it would actually cost today. If your home is destroyed and it costs $600,000 to rebuild but your coverage cap is $400,000, you're absorbing a $200,000 gap.
What to do
Ask your broker to run a current replacement cost estimate on your home. This is not the same as market value. It's based on the actual cost to rebuild — and it should be reviewed every few years.
Thinking your homeowner policy covers your home business
More people than ever are running businesses from home — whether a full-time operation or a part-time side business. Most standard homeowner policies provide very limited (or no) coverage for business property, business liability, or business interruption in a home setting. If a client slips and falls on your property, or a fire destroys your business inventory and equipment, you may find your homeowner policy leaves you significantly exposed.
What to do
Disclose your home business to your insurer. Depending on the nature of your business, you may need a home business endorsement or a separate commercial policy.
Accepting a settlement too quickly — or going it alone
After a loss, adjusters move quickly — and first settlement offers don't always reflect the full scope of damage. Hidden moisture behind walls, structural issues that aren't immediately visible, and the true cost of bringing damaged spaces back to pre-loss condition can all be missed in an initial assessment. Signing off on a settlement too early can leave you financially short when the full picture emerges — and at that point, reopening a closed claim is difficult. This is where working with an experienced restoration company makes a real difference. We document damage thoroughly, understand the insurance process from the inside out, and can work alongside your adjuster to help ensure nothing is overlooked.
What to do
Don't sign a final release until all damage — including hidden moisture and structural concerns — has been fully assessed by qualified professionals. A restoration company can help you understand what a fair and complete settlement looks like.
We hope you never need to use this information under pressure. But if a pipe bursts, a storm causes damage, or water finds its way into your home, being prepared — with the right coverage, the right documentation, and the right team — makes all the difference.
Total Restoration Services has been helping homeowners across the North Okanagan & Shuswap regions navigate exactly these situations since 2002. We work directly with insurance companies and can guide you through the process from first call to full restoration.