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The city of Port Colborne in southern Ontario has chosen to invoice property owners’ insurance companies directly for fire services rendered to residents.
City councillors approved a recommendation by Port Colborne’s broker – McAvoy, Belan and Campbell – earlier this week, to let the city work directly with insurers to recover costs associated with firefighting, which include equipment costs and time spent fighting fires.
The recommendation noted that Port Colborne’s fire department responds to 30 property fires each year on average; 15 to 20 of those fires would be billable through the new system.
Fire Chief Tom Cartwright, who was present during the proposal, estimated that each fire incident costs about $13,000.
The recommendation came as Fire Marque presented to the city council. The firm, established by former fire claim adjusters, had offered to submit claims against property owners’ insurance policies to recover costs for the fire department, thus potentially saving the city time and resources from going after the money. Fire Marque offered its services in exchange for 30% of the recovered costs.
Another firm in the town, Segwick Canada, could also submit claims for the city. According to the recommendation, Segwick charges less than Fire Marque – a $95 flat fee and a recovery percentage that starts at 25% and goes as low as 15% for larger claims. Segwick also allows the city to complete the process on its own when it sees fit, while Fire Marque requires that it handles all claims on its own.
McAvoy also recommended that the fire department could take another, more direct approach, Port Colborne Leader reported. This “hybrid approach” sees the fire department contacting homeowners directly to assess if they are making a claim.
