P.E.I. senior battling for insurance coverage after Fiona damage

A P.E.I. senior is locked in a battle with his insurance company over who should pay for thousands of dollars of damage his home sustained in post-tropical storm Fiona.

“It’s just like a punch to the gut,” says Paul Williams, 72, who lives in New Annan, just east of Summerside. “My house was off the blocks and there was a lot of damage around the area.”

His entire deck was destroyed, a hole formed in his roof after shingles were ripped off, and the house was pushed off its supports, Williams said. He estimates the cost of repairs at around $50,000. 

He was out of his house for about two months after the Sept. 24 storm, but is back now that some fixes have been made to the foundation and roof. 

At first, Williams said, P.E.I. Mutual Insurance Company told him some damage would be covered.

Now, he said, the insurance company says the roof repair is covered, but not the cost of putting the house back on its blocks.

Williams says he was told storm surge caused his damage and that's not covered by his insurance policy.
Williams says he was told storm surge caused his damage — and that’s not covered by his insurance policy. (Wayne Thibodeau/CBC)

Williams said P.E.I. Mutual has declared that work not coverable because they’re blaming it on storm surge, which his policy doesn’t cover.

The senior said that couldn’t be the case because there was no salt water damage anywhere around his home. He insists it was Fiona’s extremely high winds that pushed his home off its foundation.

You work and save a little nest egg and think you have insurance … and this is what you’re left with.— Paul Williams, 72

Williams pointed out that cottages near his home were ripped off their foundations and carried down the street.

“Don’t get me wrong; there’s a lot of people out there worse off than I am. But at the same time, you work and save a little nest egg and think you have insurance … and this is what you’re left with — so then, what do you do?”

'P.E.I. Mutual remains committed to our members, and have brought in significant additional resources to assist with supporting the needs of our policyholders,' says Craig Noonan, the company's CEO, in a statement.
‘P.E.I. Mutual remains committed to our members, and have brought in significant additional resources to assist with supporting the needs of our policyholders,’ company CEO Craig Noonan said in a statement. (Wayne Thibodeau/CBC)

P.E.I. Mutual Insurance Company wouldn’t comment on Williams’s case specifically, but the company’s CEO, Craig Noonan, said in a statement that Fiona caused “unprecedented” damages.

“This is among the top catastrophic weather events in Canadian history, and by far the largest in Atlantic Canada. In this extraordinary circumstance, P.E.I. Mutual remains committed to our members, and [has] brought in significant additional resources to assist with supporting the needs of our policyholders,” the statement said.

Storm surge typically not covered

The association that represents many Canadian insurance companies said Fiona was the most costly storm to ever hit the region — with $800 million in damages and counting.

“Typically, storm surge is not an insured peril. I know we’ve had a lot of conversations with some folks who fell victim to storm surge during this event,” said Amanda Dean, vice-president of the Insurance Bureau of Canada for the region.

“It is enormously traumatic. You can tell when you speak with them. It’s a very tough time to be going through.”

Williams is now appealing his case. He hopes if the insurance company doesn't pay his thousands of dollars in damages will be covered by the province's program.
Williams is now appealing his case. He hopes if the insurance company doesn’t pay his thousands of dollars in damages will be covered by the province’s program. (Ken Linton/CBC)

P.E.I. Mutual is not a member of the Insurance Bureau of Canada 

However, Dean said insurance companies’ decisions can be appealed through a claims supervisor or the company’s ombudsman. If a dispute can’t be resolved within the company, customers have the option of complaining to the federal OmbudService for Life and Health Insurance.

Homeowner will appeal

Williams is now appealing his case. However, if the insurance company doesn’t cover his thousands of dollars in damage, it could end up being covered by the province’s program.

The P.E.I. government said anyone who has had claims denied may be eligible for financial help through the Provincial Disaster Financial Assistance Program.

Information sessions on that program are being held this month for anyone who has questions about the program. The schedule has been posted on the province’s website.