After Wendy Lalonde watched her Copper Cliff home burn down Aug. 16, she received a second shock. When she phoned her insurance company, she was told her home insurance had been cancelled by the company two months earlier.

Though Lalonde said the insurance firm did not explain why her insurance was cancelled, she said she believes a fire that burned down her detached garage four months ago played a part.

Lalonde did not disclose the name of her insurance company to Northern Life.

An insurance agent with her former insurer told her a registered letter had been sent to inform her the policy had been cancelled, a letter Lalonde said she never received.

On Aug. 18, she was told a normal letter had been sent because her insurance had been cancelled at renewal, rather than at mid-term.

A registered letter is required by law if an insurance company cancels home insurance mid-term, but is not required when it is cancelled at renewal, said an insurance broker with a different company, who did not want to be named.

The broker said if the insurance had been cancelled mid-term, the bank holding Lalonde's mortgage would have to be informed as well, something also not required at an end-of-term cancellation.

Lalonde said her case will go before the insurance company's head office to see if the company will cover the costs involved with the fire.

“Their point is that they sent a letter,” she said. “I said I never got it...There should be more done than that.”

The broker said she agrees with Lalonde to a certain point. She said the first thing she would do if a client's insurance had been cancelled, even if at renewal, would be to contact them.

“The first job of a broker is to work for the client,” she said. “Something else could have been offered.”

But with two months passing without Lalonde noticing the insurance had been cancelled, she said she believes the woman doesn't have much hope of winning any concessions from the insurer.

The 110-year-old house took four to five hours to put out. According to Greater Sudbury Fire Services Platoon Chief Mike Valiquette, the fire was difficult to extinguish because it was in the walls. The house had been insulated with sawdust.

The family was not home at the time of the fire, and lost everything except the clothes on their backs and a kitten rescued by a firefighter.

A second kitten died in the fire, and all of their belongings were destroyed.

Lalonde and her children, 17-year-old Craig and 16-year-old Sherry, have been staying at a hotel since the fire. The Red Cross provided emergency shelter and money for new clothes. Lalonde said people are rallying to help her family, offering furniture and clothing.

“I don't have an apartment yet,” she said. “My main concern is finding a place to live. We're looking at townhouses today. Then — what do I do? The house is still sitting, but it's ruined. (It's) my responsibility to tear it down. Then I have a $60,000 mortgage with no house.”

A trust fund for the family is being set up at TD Bank, and should be available to take donations on Aug. 23.

St. John the Divine Anglican Church at 32 Godfrey Ave. is opening its doors to take donations of clothes, household items, food and money to help the family. The church will be open Aug. 23, 25, and 27 between 5 and 9 p.m., and Aug. 25 and 26 from 1 to 4 p.m. The church asks people with large items leave a phone number and message as space to store donations is limited. For more information, phone 705-682-2623.

Insuring older homes

“The first thing I look at when insuring a house is the condition,” the anonymous insurance broker said. “Has the furnace been replaced in 20 years? Has the roof been replaced in 20 years?” The electrical and plumbing systems are big factors in deciding whether or not the company will insure a home.

Older homes are very hard to insure, and some companies wouldn't even glance at a 110-year-old home. The condition and maintenance of the home can be a deciding factor.

Since there is no law requiring house insurance, an insurance company can turn down applicants for any reason it wants. Once insured, however, the company has laws it must follow before cancelling a policy mid-term.