Just one official insurance-related flooding complaint filed with regulator

Despite heightened homeowner concerns about the actions of insurance companies in the wake of two severe flooding incidents in the Windsor area over the last two years, the Financial Services Commission of Ontario says it has received only one official consumer complaint.

With insurance policy renewals coming in over the past year, some local homeowners were learning that their coverage — due to flooding claims — would no longer be provided, would be capped below replacement values or would exclude sewer backups.

But the commission, which in part oversees the industry, has only received one official insurance-related complaint from Windsor and Essex County pertaining to flooding in the past year, said spokesman Malon Edwards.

Two massive storms in 2016 and 2017 — swamping sections of Windsor and Tecumseh — flooded hundreds of homes causing damages that saw the insurance industry pay out claims totalling $300 million.

Municipal politicians and administrators have since dealt with multiple customer complaints about insurance coverage and other flooding-related issues. When insurance-related complaints are received by the Financial Services Commission of Ontario, the provincial agency first “determines if the consumer has contacted their insurance company to resolve the complaint,” Edwards said.

“FSCO’s involvement in a consumer complaint generally starts when a complaint remains unresolved by the financial institution or intermediary or the complainant has received a final position letter,” he said. “Our role, primarily, is to address contraventions of the Insurance Act and related regulations.”

The agency does not deal with claim amount complaints or interpretation of policy coverage, Edwards said.

For those concerns, consumers should contact the General Insurance OmbudService (GIO), he said. The independent organization assists consumers in resolving concerns or disputes with their home, auto or business insurers. GIO can be reached at 1-877-2250446 or through their website at www.giocanada.org.

But the Financial Services Commission of Ontario does require all insurance companies to have a complaint-handling protocol in place.

The complaint officer for each licensed insurance company in Ontario is listed on FSCO’s website at www.fsco.gov.on.ca.

On its website, the agency also provides information to help people better understand their home insurance, Edwards said.