House fire insurance claims in New Brunswick run on a contract. You paid premiums, the insurer promised to pay for the loss, and the statutory conditions in the Insurance Act set the rules for how the claim is processed. Most disputes come down to three things: what the property was worth, what caused the fire, and what the policy wording means. This page explains each stage, from the policy to the Proof of Loss to litigation, and where a fire loss lawyer earns their fee.
The insurer is a business. Its adjuster’s job is to close the file for as little as the policy allows. That is not bad faith on its own, but it means the first offer is rarely the full value of the loss. Whether the fire started with wiring, a stove or something outside the house, the policyholder’s position improves when the file is documented and the statutory deadlines are met.
Mike Murphy Law Group is led by Michael B. Murphy, KC. The firm has decades of litigation practice and over 100 reported decisions, and it runs insurance disputes from the Moncton head office and its other Atlantic offices. When a claim stalls with an adjuster, the firm takes over the communication, collects the evidence and pushes for a settlement that matches the loss.
House Fire Insurance Claims Start with the Policy Wording
The policy decides what is paid and on what terms. Every fire policy in New Brunswick carries statutory conditions set by provincial law. The first step in any claim is to read the whole policy, because coverage limits often surprise homeowners after the fire rather than before it.
The central question is replacement cost versus actual cash value. Replacement cost pays to replace damaged property with materials of like kind and quality. Actual cash value deducts depreciation, so a ten-year-old sofa is paid at a ten-year-old price. A policy that only covers actual cash value pays much less than it costs to buy new. The lawyer’s job is to find which standard applies to each item and to stop the insurer applying depreciation where the policy does not allow it.
A standard policy also splits into parts: dwelling, detached structures, personal property and Additional Living Expenses (ALE). ALE pays the cost of living somewhere else while the house is repaired or rebuilt. Insurers try to cap those payments or push families back into a house that is not yet habitable. The ALE claim needs its own records and its own argument, and it runs until the house is habitable, not until the insurer decides it should be.
The Adjuster Works for the Insurer
An adjuster is assigned soon after the fire is reported. The adjuster works for the insurer, not for you. They may ask for a recorded statement or press you to sign a Proof of Loss before you have counted what was lost.
The insurer may also hire its own investigators to determine cause and origin. If they suspect arson or a material misrepresentation in the original application, that becomes the reason to deny. Legal advice early in the process prevents the offhand answer that later becomes the insurer’s defence.
If the adjuster’s valuation of the house or contents is low, the firm retains independent appraisers and contractors for a second opinion. That independent evidence is what moves a negotiation.
Three Disputes Recur in Fire Loss Claims: the Proof of Loss, the Cause, and the Scope of Repair
Most contested fire claims turn on one of three points. The Proof of Loss is the first trap. New Brunswick policies require a formal Proof of Loss within a set time. A late or inaccurate one delays payment and can void coverage. It has to list every item lost, with age, condition and replacement cost, from furniture and electronics to clothing. That inventory takes weeks to build properly, and the insurer will compare it line by line against any earlier list you gave the adjuster on the phone. Differences between the two become questions about honesty, so the first list should be the careful one.
The cause investigation is another common flashpoint. If the fire department or the insurer’s investigators cannot identify a cause, the insurer may investigate under a “reservation of rights,” which means it is looking for a legal reason to deny while payments sit on hold. The firm retains its own cause and origin experts so the insurer’s account is not the only one on the file.
The third is scope of repair. Insurers propose “cleaning” smoke-damaged items that cannot be saved. Smoke and soot penetrate porous material and the odour and the health risk stay. Mattresses, upholstered furniture, clothing and drywall are the usual arguments, and the insurer’s cleaning contractor will say all of them can be restored. Hidden damage, such as charred beams behind drywall or heat-damaged wiring, must be in the repair estimate. A cosmetic fix is not a repair.
A Denial Is Disputed on the Policy and on the Duty of Good Faith
Common grounds for denial are arson allegations, vacancy at the time of the fire, and non-disclosure of a risk when the policy was bought. A denial letter is the start of a dispute, not the end of the claim. The firm reads the letter against the policy and asks whether the insurer has acted in bad faith.
Canadian insurers owe their policyholders a duty of good faith. An insurer that denies without a reasonable basis or fails to investigate properly can be liable for damages beyond the policy amount. The firm sues on the contract and, where the facts support it, for bad faith. The New Brunswick Insurance Act sets out the protections the policyholder can rely on.
The limitation period is the other clock. New Brunswick gives a limited window from the date of loss to start an action. Miss it and the right to sue is gone regardless of the merits. The firm tracks that date from the first meeting.
A New Brunswick Firm Knows the Court, the Insurers and the Local Property Issues
Local practice matters in three ways. The firm has offices in Moncton and Saint John. Its lawyers know the Court of King’s Bench, the judges who hear these cases and the defence counsel the insurers retain. They also know the issues that are particular to New Brunswick homes, from coastal weather to rural property lines.
All personal injury and related insurance claims are taken on a contingency fee. No win, no fee. The fee comes out of the recovery, and if there is no recovery there is no fee. That means the firm’s interest is the same as yours: the highest settlement in the shortest time.
Fire losses sometimes carry other claims. If a faulty product or someone else’s negligence started the fire, there may be a personal injury action against them. If the aftermath has left someone unable to work, the firm also acts on long-term disability claims. One firm handling both means the claims do not undercut each other.
The Inventory, the Receipts and the Medical Records Make the Claim
Start a room-by-room inventory as soon as it is safe. Memory of what a house held fades under stress. Photos and video from before the fire are the best evidence of contents, and the firm uses them to prove the full value of personal property.
Keep every receipt connected to the fire: hotels, restaurant meals, extra mileage because you are living further from work or school. Those are ALE items, and over several months they add up to thousands of dollars the insurer owes.
If anyone was physically hurt, keep the medical records, the first responder reports and photographs of the injuries. Physical and psychological injuries are claimed alongside the property loss.
Litigation Runs From Statement of Claim Through Discovery and Mediation to Trial
If negotiation fails, the claim becomes a Statement of Claim in the New Brunswick Court of King’s Bench. That document sets out the breach of contract and the damages claimed. Most cases settle before trial, but the firm prepares each one for trial from the start because insurers price a claim by how likely it is to reach a courtroom.
Discovery gives the policyholder the insurer’s internal file: the adjuster’s notes, the valuation, the reason for denial, and the investigator’s cause and origin report. Insurers do not volunteer those documents before a claim is issued, and they often show that the denial was decided before the investigation was finished. The firm also examines the adjusters and investigators under oath. Inconsistencies in the insurer’s position come out at this stage.
Mediation is usually a required step. A neutral mediator works with both sides toward a settlement. Many clients prefer it to trial. If the insurer will not move, the matter goes to a judge.
Damages Are Special, General and Consequential
Damages split into special and general. Special damages are the countable losses: rebuilding the house, replacing contents, ALE. General damages cover pain, suffering and emotional distress, and while they are more common in personal injury cases they can apply where the insurer’s conduct was egregious.
The principle is to make the plaintiff whole: the same financial position as before the fire. Insurers invoke “betterment,” the idea that a repair improves the property beyond its pre-fire state, to reduce what they pay. The policyholder is entitled to the quality of repair the premiums bought. If the policy is replacement cost, a new roof replaces the old roof and the insurer does not deduct for the fact that the old one was twenty years old.
Consequential damages are losses that flow from the insurer’s breach, such as a business opportunity lost because payment was delayed. The firm looks for them in every file.
Mike Murphy Law Group Has Litigated Fire Claims of Every Size Across Atlantic Canada
Michael B. Murphy, KC, is a former Attorney General and Minister of Justice of New Brunswick. The firm has more than 40 years of litigation practice and has handled fire claims from a kitchen fire in a bungalow to a total commercial loss.
The firm has offices in Moncton, Saint John, Halifax, Charlottetown and St. John’s, and knows the insurance law of each province. The first consultation is free.
FAQ
How Long Do I Have to File a Fire Insurance Claim in New Brunswick?
The statutory conditions in your policy and the Insurance Act set the timelines. Report the loss immediately. If the claim is denied, there is a limited window, often one or two years from the date of loss, to start an action. Get advice early so no deadline passes.
Can the Insurance Company Deny My Claim If the Fire Was Accidental?
Most policies cover accidental fires, including those caused by your own carelessness, such as a candle left burning. The insurer can deny if it believes the fire was set deliberately or if there was a material change in risk you failed to report. Both grounds can be disputed.
What If My Insurance Company Offers a Settlement That Is Too Low?
You are not obliged to accept the first offer. The firm negotiates using independent appraisals and expert evidence to prove the actual value of the loss.
What is “Additional Living Expenses” coverage?
ALE is the part of most homeowner policies that pays the extra cost of living while the house is uninhabitable: hotel stays, a rental, increased food costs. The insurer should pay it promptly through the repair period.
Do I Need a Lawyer Even If the Insurance Company Hasn’t Denied My Claim Yet?
Not always, but early advice prevents the common mistakes: an incomplete Proof of Loss, a recorded statement that is later used against you, a signed release that ends the claim short. Clients with counsel from the start usually see a faster and larger settlement.