Rebuilding after a fire or flood in Ontario

Two phases, often two contracts

Restoration after a serious loss has two parts.

Mitigation is the emergency work: stopping the damage, extracting water, drying, removing what cannot be saved, cleaning soot, securing the building. It starts immediately and is finished in days or a few weeks.

Reconstruction is putting the building back: framing, insulation, drywall, flooring, cabinets, trim, paint and the trades that go with them. It starts once the building is ready and takes weeks to many months.

They are usually estimated, approved and invoiced separately. The same company may do both, or you may choose a different builder for the second part.

Before rebuilding starts

• Drying is confirmed by moisture readings. Closing wet framing behind new drywall causes mold.
• Demolition is complete and the structure cleaned. After a fire, charred wood is removed or cleaned and sealed against odour.
• Hazardous materials are dealt with. In older buildings, asbestos and lead found in the damaged areas are handled before the trades arrive.
• Structural questions are answered. After a significant fire, an impact or a flood that undermined foundations, a structural engineer assesses what can stay.
• The cause is fixed. The plumbing fault, roof defect, drainage problem or electrical fault that led to the loss.

The scope of work

The scope is a room-by-room list of what will be repaired or replaced. For an insured loss, the contractor and the adjuster each prepare or review an estimate, commonly using standard estimating software, and agree the scope and price.

Read it carefully. Check that it includes:

• Every affected room, including closets and the far side of shared walls
• Insulation and vapour barrier, not only drywall
• Finishes of like kind and quality to what you had
• Painting whole walls or rooms, not patches
• Flooring to a sensible break point
• Trim, doors and hardware
• Electrical, plumbing and heating work
• Cleaning, and removal of debris
• Permit fees and any engineering

If something is found during the work that could not be seen before, such as hidden damage inside a wall, the contractor documents it and asks the insurer to approve a supplement. This is normal.

Permits

In Ontario, a building permit is required under the Building Code Act for construction, and most municipalities require one for repairs that involve structure, changes to plumbing, heating or ventilation, or fire separations. Simple like-for-like replacement of finishes, such as drywall, flooring and cabinets, generally does not need one. The line is drawn by your municipal building department, so ask.

• After a major fire, expect to need a permit, with drawings, and sometimes an engineer’s report.
• Electrical work is separate. It must be done by a Licensed Electrical Contractor and filed with the Electrical Safety Authority.
• Gas work must be done by a licensed gas technician.
• Septic repairs need their own permit.
• Conservation authority approval may be needed for properties in a regulated flood plain.

Inspections are booked at stages, and the walls stay open until the relevant inspections have passed. Permit timing is one of the main reasons rebuilds take longer than people expect.

Code upgrades

Repairs must generally meet the current Building Code, at least for the work being done. In an older house this can mean things the house did not have before: more insulation, different wiring, hard-wired smoke and carbon monoxide alarms, larger egress windows, changes to stairs or guards.

Standard policies pay to replace what was there. The extra cost of complying with current codes is covered only if the policy includes by-law or building code coverage, and then up to its limit. Ask your adjuster at the start whether you have it and how much. Otherwise the upgrade is at your own expense.

Matching

Where part of a floor, a run of cabinets or one slope of a roof is damaged, the new material may not match the old. Policies and insurers differ on how far replacement extends for the sake of a uniform appearance. Raise it early, with photographs, and before any work that would settle the question by default.

Upgrades and changes you want

A rebuild is an obvious time to change things: a different floor, a better kitchen, a finished basement done properly this time. That is generally allowed. The insurer pays what it would have cost to restore the original, and you pay the difference. Get this set out in writing as a separate line, so that there is no confusion later.

After water damage in a basement, consider materials that will cope better next time: rigid foam insulation, moisture-tolerant wall systems, tile or vinyl in place of carpet, and electrical outlets set higher.

The usual order of work

1. Structural repairs and framing
2. Roofing, windows and exterior, to make the building weathertight
3. Rough-in plumbing, electrical and heating
4. Inspections
5. Insulation and vapour barrier
6. Drywall, taping and priming
7. Flooring, cabinets and trim
8. Painting
9. Fixtures, appliances and finishing
10. Final inspections and cleaning
11. Contents returned

How long it takes

It depends on the size of the loss, the permit process, the availability of trades and materials, and how quickly decisions are made. As a rough guide, the repair of a few rooms after a water loss takes weeks. A major fire rebuild takes many months, and a total loss can take more than a year. After a regional disaster, everything takes longer because every contractor is busy.

Ask for a schedule, and ask what could delay it. If you are living elsewhere, check how long your additional living expenses coverage will last. See additional living expenses explained.

Paying

• The insurer usually pays in stages. Where there is a mortgage, the lender may be named on the cheques.
• Your deductible is paid by you, usually to the contractor.
• Many policies pay the depreciated value first and release the rest when the work is done.
• Have a written contract with the scope, price, payment schedule and start and finish dates.
• Do not sign a completion certificate until the work is finished to your satisfaction.
• Ontario’s Construction Act provides for a holdback on construction payments. Ask your contractor or lawyer how it applies.

Choosing who rebuilds

You are generally free to choose your own contractor. See how to choose a restoration contractor.

More: reconstruction.