Owners of mobile homes in Yellowknife, NT are claiming that their insurer has been overcharging them for years due to a misclassification of home types.
Tawna Brown, one of the homeowners, discovered in March 2018 in a policy renewal notice from The Co-operators that her insurance costs had increased by about $400. She was initially told that the increases were related to the Fort McMurray wildfires and a house fire that broke out in her neighbourhood.
Unsatisfied with the answers she was given, Brown later approached a Co-operators official from outside Yellowknife, who asked her to redo a questionnaire typically used to gauge the rate a customer should pay.
“It was through that questionnaire that we discovered — both him and I — that my house had been overvalued by more than $200,000,” she told CBC News.
According to Brown, her home was overvalued because the property was listed as a stick-built detached home rather than a mobile home. This meant that her premium was over $900 higher than it should have been.
She later took the questionnaire to a Co-operators district manager, but it took many phone calls and emails over a period of nine months – including a complaint to The Co-operators’ ombudsman – before she got a response.
“All he could say about what it was attributed to was some new tools — some new tools they are using now to more accurately calculate the value of a home,” Brown said, adding that the manager offered a refund of the overpayment for only one year.
Another Yellowknife resident, Randy O’Keefe, also discovered that his mobile home was listed as a detached stick-built home during a policy renewal five years ago. He was also offered a refund by the insurer for the overcharging, but it was just over $4,000. O’Keefe revealed that since raising the issue, his premiums have jumped, and the deductible for his home has gone from $500 to $5,000.
CBC News requested an interview with The Co-operators, but no-one was available at the time. The insurer, however, issued an email response.
“The Co-operators has a very long and proud history of serving our clients in Yellowknife,” the email read. “It’s important to note that the market there has fluctuated over the years which can affect how a dwelling may have been rated.”
