Kanetix
Property Insurance Forum

Does a property insurance claim follow the owner or the property?

The quick answer is "yes" to both situations. Property insurance claims are searchable by both the individual and the location of the property.

Premiums are based the claims history of the person requesting coverage, and the history of the property. The history of the property is important to an insurer if a problem repeatedly occurs at an address. For example, if a specific property has a history of insurance claims as a result of a sewer backup, the insurer may refuse coverage or charge higher premiums until the cause of the sewer backup has been fixed.

Sean Graham, Principal Broker at KTX Insurance Brokers.

Neither Kanetix® nor the KanetixForum.ca is an insurance broker or agent. Although this information has been passed along to you from KTX Insurance Brokers through the Forum, we are not responsible for the opinions expressed by them. Insurance can be complicated. When reading these answers, keep in mind each person's situation is unique. Individual responses may vary depending on your insurer, geographic location, and specific circumstances. If you have a similar situation, always speak with your insurance provider, or a licensed insurance representative, for terms and conditions that may apply to you.

how does a potential home owner find out if a particular property has had previous claims? From your post, it sounds like insurance companies can do a simple 'search' for a master data base and come up with this information to determine if the insurance company will cover a particular property. If a property has had claims, will you let the potential homebuyer know that information? It will be helpful to determine if the property is fair investment. Also, most brokers and sellers disclose 'as far they are aware', which is pretty much nothing.

Insurers, brokers and agents all have access to a claims database to check for property claims. This database is called 'HITS' and is available through CGI: https://portal.cgi-ibs.com/en-CA/iis/ConsumerServices/Pages/ConsumerServices.aspx

As of now, these reports aren't available to the public. However, when you go to purchase a new home and new insurance, your broker will pull this report. Most brokers will share this information freely with you, although it never hurts to ask if the home has had any prior claims.

My own personal experience helped me steer clear of two properties which were on my short list for a new home. I know this information will be valuable for potential home buyers and is just another service that your broker can provide.

Sean Graham, Principal Broker at KTX Insurance Brokers