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Insurer to pay out Alberta sewer backup claims, despite policy exclusion: report


July 5, 2013   by Canadian Underwriter


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RBC Insurance will pay out claims related to sewer backup in the flood-hit areas of Alberta, despite its policies excluding that coverage, a Calgary newspaper reported Friday.

Insurer to pay out claims

According to a report from the Calgary Herald, some RBC Insurance policyholders will be receiving up to $50,000 for repairs.

“Our decision is based on our ongoing evaluation of the situation on the ground as we have provided service to our clients,” a company spokesperson told the newspaper.

Earlier in the week, the Canadian Press reported that some Calgary residents were upset their claims for sewer backup-related damages were being denied, while other homeowners in the same neighbourhoods were having their repairs covered.

“Residents of the Elbow Park neighbourhood in Calgary say some insurance companies are approving claims while others are not — despite similar policy wording,” that report said.

On Thursday, the Insurance Bureau of Canada said its Consumer Information Centre has been taking calls from Alberta consumers who have questions about the claims process and how to proceed when they have a dispute with their insurer.

According to an IBC survey, about 5,000 insurance company personnel have been deployed to work on Alberta claims following the severe flooding.

The Insurance Brokers Association of Alberta is also encouraging residents to contact their brokers with questions about their policies and what to do if they find themselves without coverage or with limited coverage.

“Even if you find yourself without coverage, your insurance broker can offer advice on how to protect your belongings from further damage and help in finding the nearest government registration centre to record your claim formally,” it said in a statement for consumers. “Once government claim forms are available, your broker will also help you complete your paperwork, making the filing process easier.”

The association is also reminding Albertans to put their health first and take regular breaks from the recovery process to better manage stress levels and help loved ones. 


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