That Dream Home Has Secrets: GTA Insurance Claims Could Cost You $10,000s (Don’t Buy Without Reading This!)

Are you worried that hidden problems in a house could cost you a fortune after you buy it?

This guide helps you buy or sell a home in the GTA. We cover Georgetown, Milton, Guelph, Acton, Oakville, and Burlington. It shows you how to deal with home insurance claims history. This is a big deal many people miss.

Why That Old Water Stain Could Cost You Thousands (Understanding Home Insurance Claims)

Home insurance protects your biggest investment. Your house. If something bad happens, like a fire or a pipe bursts, insurance helps pay for repairs. Without it, you might lose everything.

Think about the crazy weather we get in the GTA. Ice storms in Guelph. Wind storms in Milton. Basement floods in older Oakville neighbourhoods after heavy rain. Insurance helps you fix the damage.

Banks also want you to have insurance. They won’t give you a mortgage without proof you have a good policy. They want to protect their money too.

Your insurance has costs. You pay a monthly fee called a premium. You also pay a deductible. This is the amount you pay yourself before insurance pays. If your deductible is $1,000, you pay the first $1,000 of a repair bill.

So, what is an insurance claim? It’s when you tell your insurance company something happened. You ask them to pay for the damage based on your policy.

Here’s how claims usually work:

1. You notice damage: Maybe a tree branch fell on your roof in Georgetown during a storm.
2. You gather info: Get your policy number. Know the date it happened. Describe the damage.
3. You report the claim: Call your insurance company fast. They give you a claim number. Someone called a claims adjuster will handle your case.
4. They inspect: The adjuster might call you. They might send someone to look at the damage.
5. They offer money: The insurance company figures out what your policy covers. They offer you money to help pay for repairs.

Keep your receipts for any fixes you do. Also keep receipts if you have to live somewhere else while your home is fixed.

Some common reasons people make home insurance claims in Ontario are:

• Water damage: This is a huge one in the GTA. Leaky pipes, burst washing machine hoses, sewer backups, flooded basements. Especially in spring thaws or heavy summer rains.
• Wind and hail: Strong winds can damage roofs and siding. Hail can break windows. Think about the wind coming off Lake Ontario affecting Oakville and Burlington.
• Fire: Kitchen fires, electrical problems, lightning strikes.
• Theft: Break-ins happen. People steal things.
• Falling objects: Tree branches are common culprits.
• Liability: Someone gets hurt on your property. Maybe a visitor slips on icy steps in Acton during winter.

Knowing about past claims on a house you want to buy is super important. It tells you about the house’s history. It can warn you about potential problems.

What Insurers Know About Your Dream Home (Insurance claims history Ontario & CLUE Reports)

How do you find out if a house has a history of insurance claims? You can ask the seller. But there’s a better way.

There’s a report called a C.L.U.E. report. C.L.U.E. stands for Comprehensive Loss Underwriting Exchange. Insurance companies use this database. It tracks insurance claims on properties for the last seven years.

This report shows:

• The date of any loss.
• The type of loss (like fire, water damage, theft).
• How much the insurance company paid.
• The insurance company involved.

Why is this report gold? It gives you a secret history of the house. Things the seller might forget to mention. Or maybe things they don’t even know about if they weren’t the owner when it happened.

How to get a C.L.U.E. report in Ontario:

Only the current owner of the property or an insurance company can order the full report. As a buyer, you can’t order it directly for a house you don’t own.

So, what do you do?

1. Ask the seller: The best way is to make it a condition in your offer to purchase. Ask the seller to provide you with a copy of the home’s C.L.U.E. report (or an equivalent insurance history report available in Canada, often called a HITS report – Home Insurance Tracking System). If they agree, they will request it from their insurance company or a provider like LexisNexis Risk Solutions.
2. Seller’s Agent: The seller’s real estate agent can help the seller get this report.
3. Your Insurance Company: Once you own the home, you can request its history report. But that’s too late if you want the info before buying.

A seller willing to share this report is a good sign. It shows they are open and honest.

If a report shows no claims in the past five to seven years, that’s great news. It usually means getting insurance will be easier and maybe cheaper.

What if the report shows claims? Don’t panic yet. It gives you information to dig deeper. Was it a leaky roof five years ago that’s been professionally repaired? Or recurring basement floods?

Knowing the insurance claims history Ontario helps you make a smarter choice. It protects you from nasty surprises later.

Red Flags Flying? Impact of past claims on insurability

Okay, so the house you love in Milton has a claims history. Why should you care?

Because past claims can make it hard, or even impossible, for you to get home insurance. Or it might make your insurance crazy expensive.

Insurance companies see a house with many past claims as high-risk. They worry the same problems will happen again. Especially certain types of claims:

• Water Damage Claims: Insurers are very wary of water damage. Multiple water claims often signal ongoing issues like poor drainage, old plumbing, or foundation problems. This is a big concern in many older GTA neighbourhoods.
• Foundation Issues: Claims related to foundation cracks or movement are major red flags.
• Mould Claims: Mould often follows water damage. Claims for mould removal can make a home difficult to insure.
• Multiple Small Claims: Lots of small claims might suggest the house isn’t well-maintained.

Here’s the scary part: Sometimes, even an inquiry about a claim can show up on the history report. Imagine the previous owner called their insurance company about a small leak. They talked about it. But decided to fix it themselves and never got paid by insurance. That call might still be logged. Too many inquiries can look bad to an insurer.

“Buyers often underestimate how past claims affect their ability to get affordable insurance,” says Sarah Chen, a (fictional) real estate agent specializing in the Guelph market. “I’ve seen deals fall apart because the buyer couldn’t secure insurance, or the quote was double what they expected, all due to the home’s claim history. Due diligence here is non-negotiable.”

If an insurance company sees too many claims, or specific types of claims, they might:

• Refuse to insure the house: They just say no.
• Offer a policy with a very high premium: You pay way more than average.
• Offer a policy with a high deductible: You have to pay a lot out-of-pocket if something happens.
• Exclude certain types of coverage: They might refuse to cover water damage if there were many past water claims.

This is why checking the impact of past claims on insurability before you finalize the purchase is critical. It’s part of your homework as a buyer in the competitive GTA market.

The Hidden Dangers: Risks associated with homes with claims history

Past insurance claims are like clues. They hint at problems the house might have. Sometimes, these problems are fixed properly. Sometimes, they aren’t.

Buying a house with a claims history comes with risks:

• Poor Repairs: The previous owner might have fixed the damage cheaply. Maybe they didn’t use a qualified contractor. The repair might fail later. For example, a patched roof leak might start leaking again after a year.
• Hidden Damage: The original problem might have caused other damage that wasn’t found or fixed. Water damage is notorious for this. A leak in a wall could lead to hidden mould growth inside the wall cavity. You wouldn’t see this during a viewing.
• Recurring Problems: The claim might point to an underlying issue that hasn’t been solved. If there are multiple claims for basement flooding in a Burlington home near the lake, it suggests a bigger problem with drainage or the foundation that wasn’t fully addressed.
• Higher Maintenance Costs: You might end up paying more to maintain or repair the house because of these past issues.

Let’s look at some GTA examples:

• Old Plumbing in Acton: An older home might have had claims for burst pipes. Even if repaired, the rest of the old plumbing could still be a risk.
• Ice Dams in Guelph: Claims for roof damage due to ice dams (thick ridges of ice build-up) suggest potential issues with attic insulation or ventilation. This could happen again.
• Foundation Cracks in Oakville: Older areas might have homes with foundation claims. Was it just settling, or is there an ongoing structural issue? Poor repairs here can be disastrously expensive.

Think about a C.L.U.E. report showing a large water damage claim two years ago. Your home inspection might not show any current moisture. But was the drywall replaced? Was the insulation checked for mould? Was the source of the leak properly fixed?

The claims history gives you specific things to investigate further. You can ask the seller for details about the repairs. Ask for receipts or warranties from contractors. You can also ask your home inspector to pay extra attention to the areas related to past claims.

Ignoring the risks associated with homes with claims history is like gambling with your biggest investment. Be informed. Dig deeper.

Selling Smart: Disclosing previous claims when selling

If you’re selling your home in the GTA, you need to be honest about its condition. This includes past problems and insurance claims.

In Ontario, sellers have a legal duty to disclose certain hidden defects. These are problems that are not easily visible during a normal inspection. Problems that could make the home dangerous or unfit to live in.

While you might not be legally required to disclose every single past insurance claim (especially if the issue was fully and properly repaired), hiding significant issues or past claims can lead to big trouble later.

Why?

1. Buyers Will Likely Find Out: Smart buyers, especially in pricey markets like Oakville or Milton, will likely ask for an insurance history report (like C.L.U.E. or HITS). If your report shows claims you didn’t mention, buyers will lose trust. The deal could fall apart.
2. Lawsuits: If you hide a serious defect related to a past claim, and the buyer discovers it after closing, they could sue you. This happens. Think about failing to disclose recurring basement water issues that you claimed insurance for previously.
3. Building Trust: Being upfront builds trust. It makes the negotiation process smoother. Buyers are often willing to accept past issues if they are disclosed honestly and proof of proper repair is provided.

The Real Estate Council of Ontario (RECO), which governs real estate professionals, emphasizes disclosure. Your real estate agent should advise you on your disclosure obligations.

So, what should you do as a seller?

• Be Proactive: Consider getting your home’s insurance history report yourself before listing. Know what’s on it.
• Gather Repair Documents: Find receipts, warranties, and contractor invoices for any work done related to past claims. This shows you handled things properly.
• Disclose Known Issues: Talk to your real estate agent about what needs to be disclosed on the Seller Property Information Statement (SPIS) or other disclosure documents. Honesty is the best policy.
• Highlight Repairs: If you had a claim for, say, roof damage, and you got a brand new roof with a transferable warranty, highlight that as a positive feature!

Being transparent about disclosing previous claims when selling protects you legally. It also helps ensure a smoother sale. Buyers appreciate honesty, especially when making such a large purchase.

Mission Possible: Finding insurance for homes with claims history

Okay, you love a house in Georgetown. But it has a claims history. Maybe a couple of water damage claims. You’re worried you won’t get insurance. What can you do?

It might be harder, but it’s often not impossible. Here’s how to approach finding insurance for homes with claims history:

1. Don’t Wait: Start shopping for insurance during your conditional period (the time after your offer is accepted but before the deal is final). Don’t wait until the week before closing.
2. Be Honest with Insurers: Tell potential insurers about the claims history you know. Hiding it won’t work; they will likely see it in the HITS/C.L.U.E. report anyway.
3. Provide Proof of Repairs: If the seller gave you documents showing the problems were fixed properly (invoices, warranties), share these with the insurance companies. This can reassure them.
4. Shop Around: Don’t just call one company. Get quotes from multiple insurers. Some companies are more conservative than others. Some might be okay with the history if the repairs look solid.
5. Use an Insurance Broker: This is often your best bet. Insurance brokers work with many different insurance companies. They know which companies are more likely to insure homes with certain types of claims history. They can shop the market for you and find the best options. A good broker who knows the GTA market can be invaluable.
6. Consider High-Risk Insurers: If mainstream insurers say no, there are companies that specialize in “high-risk” properties. Premiums will be higher, but it might be the only way to get coverage initially. You might be able to switch to a standard insurer after a few years with no new claims.
7. Improve the Home’s Risk: Sometimes, insurers will offer coverage if you agree to make specific upgrades. For example, if there were past water claims, they might require you to install a sump pump or a backwater valve before they issue the policy.

Finding insurance might take more effort and might cost more. Factor this potential extra cost into your budget when deciding if the house is affordable for you.

Don’t give up immediately if the first insurer says no. With persistence and the right help (like a broker), you can often find a solution.

Using History to Your Advantage: Negotiating price based on claims history

So, the C.L.U.E. / HITS report shows some past issues. A leaky roof claim three years ago. A basement water claim five years ago. How can you use this information?

You might be able to use it to negotiate a better price for the house.

Here’s how negotiating price based on claims history can work:

1. Identify Concerns: Look at the claims. Are they for minor things, or major potential problems? Was the repair recent or long ago? Are there multiple claims for the same issue (like recurring water damage)?
2. Investigate Further: Use your home inspection to focus on the areas related to the claims. Ask your inspector to look closely at the roof patches or the basement walls. Get their professional opinion on the quality of the repairs and the risk of future problems.
3. Get Repair Quotes: If the inspector finds issues related to the past claims, or if you’re worried about future risks (like needing to replace old plumbing soon because of past pipe bursts), get quotes from qualified contractors for potential future repairs or necessary upgrades.
4. Use Facts in Negotiation: Present your concerns clearly to the seller, backed by evidence. “The insurance history shows two claims for basement flooding. Our inspector noted ongoing moisture issues in the corner where the claims occurred. We have a quote for $8,000 to install proper drainage and waterproofing.”
5. Justify Your Offer: Use the potential costs and risks to justify offering a lower price. You’re taking on a higher risk, or you have immediate repairs needed because of these past issues.
6. Be Realistic: Don’t expect a massive discount for a minor claim from seven years ago that was clearly fixed properly. Focus on recent claims, recurring issues, or claims that point to expensive future repairs.

From the seller’s side, being prepared helps. If you know your house has a claims history, having proof of proper repairs readily available can counter a buyer’s attempt to lowball the price significantly. You can show the issue was resolved professionally.

Negotiating based on claims history requires facts and a clear understanding of the potential risks and costs involved. It’s another tool in your toolkit for buying smart in the competitive GTA market.

Keeping Your Record Clean: Preventative measures to avoid future claims

Whether you just bought a house or you’re planning to sell yours soon, keeping your home insurance record clean is important. Fewer claims mean lower insurance costs and less hassle when you eventually sell.

Here are some preventative measures to avoid future claims, focusing on common issues in the GTA:

• Water Damage Prevention (The Big One):
  • Check hoses: Regularly inspect hoses on washing machines, dishwashers, and refrigerators with ice makers. Replace them every 5 years, even if they look okay. Use braided steel hoses – they are stronger.
  • Know your main water shut-off: Find it now. If a pipe bursts, shutting off the water quickly saves huge damage.
  • Maintain your sump pump: If you have one (common in Milton and newer areas), test it regularly, especially before spring melt or heavy rain. Consider a battery backup pump.
  • Install a backwater valve: This prevents sewer backups into your basement during heavy storms. Some municipalities offer subsidies.
  • Keep eavestroughs clean: Clogged gutters cause water to overflow, potentially damaging the roof, siding, and foundation. Clean them spring and fall.
  • Ensure proper grading: The ground around your foundation should slope away from the house. This helps water drain away, not seep into the basement. Common issue in older Guelph homes.
  • Winterize outdoor pipes: Disconnect hoses and shut off outdoor water taps before the first deep freeze to prevent pipes from bursting.
• Roof Maintenance:
  • Inspect regularly: Check for damaged, loose, or missing shingles, especially after big wind storms.
  • Address ice dams: Ensure your attic is well-insulated and ventilated to prevent ice buildup on the roof edge in winter.
• Fire Safety:
  • Test smoke and CO detectors: Monthly tests and battery changes twice a year are crucial. Replace detectors every 10 years.
  • Watch cooking: Never leave cooking unattended.
  • Dryer vent cleaning: Clean the lint trap after every use and have the dryer vent pipe professionally cleaned regularly to prevent fires.
  • Electrical safety: Don’t overload circuits. Use extension cords safely. Have any flickering lights or funny smells checked by an electrician.
• Theft Deterrence:
  • Lock doors and windows: Even when you’re home or just popping out quickly.
  • Use timers for lights: Make it look like someone is home when you’re away.
  • Secure sliding doors: Use security bars.
  • Consider a security system: Alarms and cameras can deter thieves and sometimes get you an insurance discount.
• General Maintenance:
  • Trim trees: Cut back branches overhanging your roof or near power lines.
  • Check appliances: Maintain your furnace, water heater, and air conditioner according to manufacturer guidelines.

Taking these steps doesn’t guarantee you’ll never have a claim. Accidents happen. But good maintenance significantly reduces the risk of many common problems. It protects your home and helps keep your insurance record clean.

Why a Clean Slate Matters: The importance of a clean insurance record

Why all this focus on keeping your insurance history clean? Because it affects your wallet and your future options.

A clean insurance record (few or no claims) means:

1. Lower Insurance Premiums: Insurers reward homeowners they see as low-risk. A clean record usually means you pay less for your home insurance.
2. Easier to Get Insurance: You’ll have more choices of insurance companies. You likely won’t face refusals or need to go to high-risk insurers.
3. Better Coverage Options: You might qualify for better policy features or higher coverage limits.
4. Easier to Sell Your Home: When you decide to sell your house in Burlington or Acton, a clean insurance history is a selling point. Buyers (and their insurers) see it as less risky. You avoid the hassles and potential price reductions that come with a negative claims history.
5. Less Stress: Dealing with insurance claims is stressful. Avoiding claims means avoiding the paperwork, the adjusters, the repairs, and the disruption to your life.

Think long-term. Filing small claims might seem convenient at the time. But if the repair cost isn’t much more than your deductible, paying out-of-pocket can save you money in the long run. It avoids potential premium increases and keeps your record clean.

Making many small claims is often a bigger red flag to insurers than one large claim for a major event like a fire.

Protect the importance of a clean insurance record. It saves you money now and makes your life easier when you buy, sell, or insure your next home.

The Real Cost: Long-term cost of insurance claims

Making an insurance claim isn’t free money. There are costs, both immediate and long-term.

Immediate Costs:

• Deductible: You always pay this amount first.
• Time and Hassle: Reporting the claim, meeting adjusters, getting quotes, managing repairs takes time and energy.
• Potential Shortfall: Insurance might pay ‘Actual Cash Value‘ (which accounts for depreciation) instead of ‘Replacement Cost’ for some items, meaning you don’t get enough money to buy a new replacement.

Long-Term Costs:

• Higher Premiums: Your insurance premium will likely increase at renewal time after you make a claim. This increase can last for several years. How much it goes up depends on the type and size of the claim, and your claims history.
• Losing Claims-Free Discounts: Many insurers offer discounts for being claims-free for a certain period. Making a claim means you lose this discount, increasing your costs.
• Difficulty Switching Insurers: Having recent claims can make it harder to shop around for a better insurance rate. Other companies might quote you higher prices or refuse coverage.
• Impact on Future Home Purchases: As we’ve discussed, a claims history can make it harder or more expensive to insure the next home you buy.
• Difficulty Selling Your Current Home: A claims history, especially for recurring issues like water damage, can lower your home’s resale value or make it harder to sell.

Consider the long-term cost of insurance claims before you file. Ask yourself:

• Is the damage significant?
• Is the repair cost much higher than my deductible?
• Can I afford to pay for this repair myself?
• How might this claim affect my insurance costs and future options?

Sometimes, making a claim is absolutely necessary, especially for large losses. That’s why you have insurance. But for smaller issues, carefully weigh the long-term financial impact before picking up the phone to call your insurer.

Buying in the GTA? Don’t Skip This Step

Okay, you’re ready to buy a home in the exciting, but complex, GTA market. You’re looking at listings in Milton, touring houses in Oakville, checking out neighbourhoods in Guelph. Here’s how to build checking the insurance claims history into your buying process:

1. Hire a Good Real Estate Agent: Choose an agent experienced in your target area (Georgetown, Acton, etc.). They understand the local market and the importance of due diligence steps like checking claims history.
2. Get Pre-Approved for a Mortgage: Know your budget first.
3. House Hunting: Find homes you like.
4. Making an Offer: This is where you protect yourself. Include conditions in your Offer to Purchase. Common conditions include financing approval and a satisfactory home inspection. Crucially, add a condition asking the seller to provide the home’s insurance claims history report (C.L.U.E. or HITS) within a specific timeframe (e.g., 5-7 business days). Your agent can help word this correctly.
5. Review the Claims History Report: Once you receive the report, review it carefully with your agent. Are there any claims? What type? How recent? How much was paid?
6. Home Inspection: Give a copy of the claims report to your home inspector. Ask them to pay special attention to areas related to past claims.
7. Shop for Insurance: During your conditional period, start calling insurance brokers or companies. Tell them about the house and any claims history. Get insurance quotes. Confirm you can actually get insurance and find out the approximate cost.
8. Address Concerns: If the claims report, inspection, or insurance quotes raise red flags, discuss them with your agent and lawyer. You might:
   • Ask the seller for more information or proof of repairs.
   • Try to negotiate a lower price based on the risk or needed repairs.
   • Decide the risk is too high and walk away from the deal (if your conditions allow).
9. Waive Conditions: If you’re satisfied with the claims history, inspection, financing, and insurance availability, you’ll sign waivers, making the deal firm.
10. Closing: Finalize the purchase and get your keys!

Making the insurance claims history check a standard part of your process protects you from buying a home with expensive hidden problems or one you can’t easily insure. Don’t skip this vital step.

Selling in the GTA? Be Prepared

If you’re putting your house on the market in Burlington, Milton, or anywhere in the GTA, being prepared for questions about insurance claims is smart.

1. Know Your History: Consider ordering your home’s insurance history report (HITS/C.L.U.E.) before you list. See what’s on it. This avoids surprises later.
2. Gather Documents: Find paperwork for any major repairs done, especially those related to insurance claims. Warranties, invoices from reputable contractors – these are valuable.
3. Discuss Disclosure with Your Agent: Talk to your listing agent about your home’s history and what you need to disclose. They will guide you on filling out the Seller Property Information Statement (SPIS) or other disclosure forms accurately and honestly.
4. Price Appropriately: If your home has a significant claims history or known issues needing repair, factor that into your listing price. Pricing it right from the start attracts serious buyers.
5. Be Ready to Share: If a buyer makes an offer conditional on seeing the claims history report, be prepared to provide it promptly. Having it ready shows you’re organized and transparent.
6. Highlight Solutions: If you had a past problem (like basement dampness) but you invested in a permanent solution (like professional waterproofing with a warranty), highlight the fix! Turn a potential negative into a positive feature showcasing responsible ownership.

Being proactive and transparent makes the selling process smoother. It builds buyer confidence and helps you avoid potential legal issues or deals falling through at the last minute because of unexpected claim revelations.

GTA Market Snapshot (2024-2025)

The Greater Toronto Area real estate market is always changing. Staying updated helps buyers and sellers make good decisions. Here’s a quick look at trends impacting areas like Georgetown, Milton, Guelph, Acton, Oakville, and Burlington as of late 2024, with outlooks into 2025:

• Market Balance: After the frenzy of previous years, the market in many GTA communities has become more balanced. This means buyers have a bit more time to make decisions and include conditions (like checking insurance history!). However, desirable homes in popular areas still sell quickly.
• Price Moderation: While prices remain high compared to historical levels, the rapid price growth has slowed. Some areas might see slight adjustments, while others hold steady. Oakville and parts of Burlington remain among the higher-priced markets. Milton and Guelph offer relatively more affordable options but have seen strong demand.
• Inventory Levels: Inventory (the number of homes listed for sale) has generally increased from the lows of 2021-2022. This gives buyers more choices. Towns like Georgetown and Acton might see fluctuations based on local development.
• Interest Rates: Higher interest rates continue to impact affordability. Buyers are more cautious and budget-conscious. This makes thorough due diligence, including checking for potential costly issues revealed by claims history, even more important.
• Local Trends (Examples – research needed for real-time data):
  • Milton & Georgetown: Continued popularity with families seeking more space than in central Toronto. Watch infrastructure development.
  • Guelph: Strong demand driven by its university, hospital, and diverse economy. Focus on energy efficiency and reliable infrastructure (relevant to insurance).
  • Acton: Smaller community appeal, potentially seeing spillover demand from more expensive neighbours.
  • Oakville & Burlington: Remain high-demand luxury and waterfront markets. Buyers expect well-maintained homes. Older homes may face scrutiny over potential water/foundation issues.
• Insurance Costs: Home insurance premiums are generally rising across Ontario due to increased severe weather events and higher repair costs. This makes avoiding homes with high-risk claim histories even more financially important.

Data Source Note: For current, specific statistics, consult the Toronto Regional Real Estate Board (TRREB), the Oakville, Milton and District Real Estate Board (OMDREB), the Guelph & District Association of Realtors (GDAR), and recent news reports. Links to local boards can be found online.

Understanding these market dynamics helps you position your offer as a buyer or your listing as a seller.

Ask the Experts (GTA Insights)

We asked (fictional) local experts for their take on navigating insurance claims in the GTA market:

Quote 1: Maria Rossi, Mortgage Broker serving Milton & Halton Region: “Getting mortgage pre-approval is step one, but securing final financing hinges on getting home insurance. I always remind my clients, especially first-time buyers, that a surprise insurance issue right before closing can jeopardize their mortgage. Checking the home’s insurance history early in the process avoids stressful last-minute scrambles.”

Quote 2: David Miller, Veteran Real Estate Agent in Oakville: “In markets like Oakville, where property values are high, buyers are doing more homework. Sellers who are transparent about repairs related to past claims, and can provide documentation, build immense trust. Hiding things rarely works and often backfires. Being upfront is just good business.”

These insights highlight that dealing with insurance history isn’t just a small detail – it’s a crucial part of a smooth and successful real estate transaction in the GTA.

Your Questions Answered (FAQ)

Here are answers to some common questions about home insurance claims and buying/selling in the GTA:

• Q1: How far back does a C.L.U.E. / HITS report go in Ontario?

  • A: Typically, these reports cover the last 5 to 7 years of claims history associated with the property.

• Q2: Does making a claim always increase my insurance premium?

  • A: Usually, yes. Most insurers will increase your premium at renewal after a claim. Some policies offer ‘claims forgiveness’ for the first claim, but this isn’t standard on all policies. The amount of increase depends on the claim type, cost, and your history.

• Q3: If a house had a claim, but the seller shows proof of professional repair, should I still be worried?

  • A: Less worried, but still diligent. Proof of professional repair is good. However, have your home inspector carefully check the repaired area. Also, confirm with your insurance broker or company if that specific past claim might still affect your premiums or insurability.

• Q4: Can I get insurance if the house I want to buy currently has an open insurance claim?

  • A: This can be very difficult. Most standard insurers will not issue a new policy on a home with an open claim. The seller usually needs to complete the repairs and close the claim before a new buyer can get insurance.

• Q5: As a seller, do I have to disclose a claim if I paid for the repairs myself without involving insurance?

  • A: You must disclose significant hidden defects you know about, whether insurance was involved or not. If the repair fixed a major issue (like a leaky foundation), disclosure is generally required. Minor repairs might not require disclosure, but honesty is always recommended. Discuss specifics with your real estate agent and lawyer. Remember, even an inquiry to your insurer might be logged.

• Q6: Where can I find more information about home insurance in Ontario?

  • A: The Financial Services Regulatory Authority of Ontario (FSRA) and the Insurance Bureau of Canada (IBC) websites offer valuable consumer information. Your insurance broker is also a key resource.

What’s Next?

You now know why checking a home’s insurance history is a critical step when buying or selling in the GTA. It’s not just about the house itself; it’s about protecting your investment and avoiding costly surprises.

Don’t let a hidden claims history derail your dream home purchase or complicate your sale.

• Buyers: Make checking the insurance history report a condition in your offer. Shop for insurance early.
• Sellers: Be proactive. Know your home’s history, gather repair documents, and disclose appropriately.

Navigating the GTA real estate market takes knowledge and careful planning. Understanding insurance claims history is a powerful piece of that puzzle.

Take this knowledge and use it to make smarter, more confident decisions in your real estate journey. Share this guide with friends or family who are thinking of buying or selling in Georgetown, Milton, Guelph, Acton, Oakville, or Burlington.