Northview renters in Yellowknife discover default tenant insurance won't cover evacuation costs

When Karmella Solomon fled Yellowknife after the evacuation order was issued last month, the cost of leaving wasn't on her mind. 

"We weren't prepared, but initially of course we just thought about our safety," she said.

She needed to cover necessities like clothes, gas and accommodations, and decided to look into the tenant insurance that she was automatically registered for when she signed a lease with Northview, the largest residential property company in Yellowknife. 

After speaking with an adjuster about her claim, it seemed like her living expenses would be covered.

"I was really happy about it, I was like, 'oh they really care about us,'" she said. 

She ended up booking a hotel for a night and bought some necessities, thankful she wouldn't be saddled with the costs. But on Aug. 28, nearly two weeks after the evacuation order went out, she was informed by an adjuster, who contacted her on behalf of her insurer Sharp Insurance, that unless her property itself was damaged, none of their costs would be covered. 

"It was really disappointing because it was a contradiction to what the initial adjustor had told me," she said. 

"We're already anxious about what's going on… We're stretching our funds just to survive this evacuation."

Daniel Wahba, a spokesperson for Sharp Insurance, sent an emailed response to CBC News saying the company would ensure that Sharp clients "affected by the wildfires in Yellowknife receive the insurance coverage that they are entitled to."

The statement said brokers are currently in communication with the insurance provider and claims adjusters.

"Our thoughts are with everyone affected by the wildfires."

An earlier version of this story said that Sharp Insurance had contacted Solomon directly. In subsequent email exchanges with the company, CBC was told that Sharp does not communicate directly with clients; that's up to the insurance companies the brokerage work with, who contact their own third-party adjusters. 

An interview request with Sharp Insurance was not granted by deadline, and CBC was unable to determine exactly who had reached out to Solomon. 

'Insurance included'

Solomon wasn't alone in her discovery as multiple other Northview tenants showed CBC News the emails they'd received, saying they wouldn't be covered unless the property was damaged.

The tenants who reached out also weren't aware of what their policy included before the evacuation order. 

CBC News received multiple Northview lease agreements that don't detail what the policy is, just a few handwritten words on the document that say "insurance included" or just "included." 

Todd Cook, president and CEO of Northview Residential REIT, said in an email that Northview does require residents to have tenant insurance.

"But this is administered via independent third party brokers and our residents' insurers," he wrote to CBC News. 

"Northview passes the rental insurance fee it collects as part of the monthly rent onto the insurance provider on behalf of tenants. Northview does not provide rental insurance."

He said tenants have access to an online portal to check their insurance details. 

But Solomon said she tried accessing the portal and it wasn't working. She sent CBC News a screenshot of her attempt which said, "According to our records you do not have valid Tenant Insurance." It also said Northview had partnered with Highcourt Partners Ltd., another insurance company, to help tenants obtain insurance.

CBC News asked Cook about issues with the portal in a followup email, but didn't receive a response.

Another Northview renter, who requested anonymity for fear of retaliation from Northview, said they ended up getting their own separate renters insurance because they couldn't find any details on what would be provided by Northview. 

The Insurance Bureau of Canada 

Rob de Pruis, the national director of consumer and industry relation with the Insurance Bureau of Canada (IBC), said his organization has received many questions from Northview renters asking about their policy. 

He said commonly a standalone tenant insurance policy covers basic expenses accrued as a result of an evacuation. But there are some policies, including these, where there needs to be damage to an actual building for the tenants to receive any assistance for additional living expenses. 

"Price is also a factor, where if you are paying a lower price, you might be getting a policy that could have less coverage than other policies," he said.

De Pruis says this is why it's important for renters to to check their policy.

For Solomon, when the evacuation order went out, safety was the priority, but as it came to an end, the cost of the experience was front of mind.

After a few more email exchanges with an adjuster, which included receiving an identical email telling her she wouldn't be covered unless the property was damaged, she ended up closing her claim. 

"The wildfire evacuation order caught a lot of us off guard and many weren't financially prepared for such a sudden situation — 'cause most of us live paycheck to paycheck," she said.