Oct 12, 2026
An Ontario woman says her home insurer dropped her after two claims in three years, leaving her scrambling to find replacement coverage that now costs twice as much.
Christine Buechler, of St. Thomas, Ont., had submitted a claim for about $18,000 after a sewer backup flooded her basement. Her insurer paid the claim, but later notified her that it would not renew her policy because of her claims history.
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Her experience shows why the cost of a home insurance claim can extend beyond the deductible. Even when a loss is covered, making a claim could affect what you pay for insurance later, or whether your insurer keeps you as a customer.
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Two claims left her searching for another insurer
Buechler told CTV News that the basement flooding was serious enough to warrant a claim. After receiving payment, she thought the matter was settled.
Then, in August, she received a letter saying her insurer would not renew her coverage because of the frequency of her claims.
Three years earlier, she had claimed $4,000 for a lost hearing aid. Buechler said she was told that making the two claims within three years made her a “high-risk” customer.
Finding another insurer proved difficult. She told CTV that she contacted roughly 10 to 15 insurance companies, some of which would not cover her. Her premiums have since doubled.
Buechler said she would’ve just paid for the hearing aid out of pocket if she knew filing a claim would bump up her future rates. She even asked beforehand if her premium would go up and was told it shouldn’t be an issue.
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Why you need to be mindful of your claims history
Insurers consider several factors when pricing home insurance, including your home’s location, condition and replacement cost. Your claim history is also a consideration.
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According to the Insurance Bureau of Canada, past claims are “often an insurer’s best predictor of future claims activity”. Each insurer weighs risk differently, so the same history may lead to different prices or coverage options.
Fleur Dsouza, an insurance expert with LowestRates.ca, told CTV News that some insurers may drop customers after two claims within five years, regardless of the amounts involved. It’s not a universal rule, but it shows that even smaller claims can impact you negatively.
CTV also pointed to figures from LowestRates.ca, which show that a single claim within five years can jack up your rates by 20% to 22% — and a second one could push them up 30%. Increases aren’t set in stone, but they highlight how much a single claim can cost you long-term.
Replacement coverage comes amid rising insurance costs
Paying more for insurance after multiple claims is challenging, especially when home insurance costs are already climbing. More frequent and severe weather events, along with higher rebuilding costs, are putting pressure on home insurance premiums across Canada.
According to Statistics Canada, catastrophic weather claims reached $8.6 billion in 2024, the costliest year on record. Across the broader property and casualty insurance industry, total claims and expenses reached $74.9 billion in 2025, up 50.1% from 2020.
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Unsurprisingly, insurers have raised premiums to offset higher claims and operating costs. Between December 2019 and December 2025, homeowners’ home and mortgage insurance premiums rose 45%, compared with overall inflation of 21%.
For homeowners like Buechler who have made multiple claims, finding another insurer willing to cover them can mean facing higher prices with fewer options.
Weigh the costs before making a smaller claim
Home insurance is designed to help cover losses that may be too costly to pay out of pocket. And Buechler’s experience doesn’t mean homeowners should avoid claiming for major damage.
However, for a smaller loss, you may want to compare the likely payout after your deductible with what you could reasonably afford to pay yourself. Ask your broker or insurer how a claim could affect your claims-free discount, future premiums and renewal eligibility. You should also check your policy’s reporting requirements. Even if you choose not to make a claim, you still may have an obligation to report an incident.
Should your current insurer decline to renew your policy, start looking for replacement coverage immediately so you don’t face a gap in protection. Compare deductibles, limits and exclusions alongside the premium, and do everything you can to ensure the new policy is in place before your existing coverage ends.
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Colin Graves is a Winnipeg-based financial writer and editor whose work has been featured in publications such as Time, MoneySense, MapleMoney, Retire Happy, The College Investor, and more. Before becoming a full-time writer, Colin was a bank manager for over 15 years.
