Mortgage Insurance P.E.I.

Mortgage insurance provides financial security to homeowners and their families by covering mortgage payments in case of unexpected life events, such as death, disability, or critical illness. However, navigating mortgage insurance policies, applications, and claims can be confusing—especially when claims are denied. Here, we’ll cover everything you need to know about mortgage insurance in P.E.I., including how to apply, what to do if your claim is denied, and how our experienced lawyers can help.

What is mortgage insurance?

Mortgage insurance is a policy designed to protect homeowners and their families. It ensures that, in the event of death, disability, or critical illness, the outstanding mortgage balance is covered. This prevents financial hardship for families who may otherwise struggle to keep their home.

Types of mortgage insurance

• Life Mortgage Insurance: Covers the remaining mortgage balance if the policyholder passes away.
• Disability Mortgage Insurance: Pays a portion or all of your mortgage payments if you become disabled and are unable to work.
• Critical Illness Mortgage Insurance: Covers your mortgage payments if you are diagnosed with a critical illness specified in your policy.

How to apply for mortgage insurance in P.E.I.

Applying for mortgage insurance typically involves the following steps:

1. Choose a Provider: Compare offerings from banks, private insurers, or mortgage brokers.
2. Submit an Application: Provide personal, health, and financial information.
3. Medical Examination: Depending on the insurer, you may need a medical assessment.
4. Policy Approval: If approved, you will receive the terms and conditions of your policy.

For a detailed list of mortgage insurance companies in Canada, refer to our blog on mortgage insurance providers.

How to make a mortgage insurance claim

If you need to make a claim, follow these steps:

1. Contact Your Insurer: Notify your insurance provider as soon as possible.
2. Submit Documentation: Provide the necessary documents, such as proof of death, medical records, or proof of disability.
3. Wait for Assessment: The insurer will review your claim and determine whether it meets their criteria.
4. Receive a Decision: You’ll be notified whether your claim is approved or denied.

Why mortgage insurance claims are denied

Unfortunately, many valid claims are denied by insurers, leaving policyholders and their families in difficult financial situations. Common reasons for denial include:

• Non-Disclosure or Misrepresentation: The insurer claims you failed to disclose important health or financial information when applying.
• Pre-Existing Conditions: The insurer alleges that your condition existed before the policy began.
• Policy Exclusions: The event or condition leading to the claim is excluded in your policy.
• Missed Payments: Claims may be denied if premiums were not paid on time.
• Insufficient Documentation: Missing or incomplete paperwork can lead to delays or denials.

Why you shouldn’t appeal a mortgage insurance claim denial alone

When your mortgage insurance claim is denied, your first instinct might be to appeal the decision directly with the insurer. However, this approach often puts you at a disadvantage. Insurers have teams of legal and claims experts whose goal is to minimize payouts – and increase profits. Attempting to appeal without professional guidance can lead to frustration, wasted time, and further denial. Here’s why consulting a lawyer is a better option:

• Complex Processes: The appeals process can involve detailed documentation, legal jargon, and strict deadlines.
• Power Imbalance: Insurers are experienced in handling appeals and often use tactics to protect their interests.
• Increased Chances of Success: A skilled lawyer understands how to build a compelling case and negotiate effectively with insurers.

By working with an insurance lawyer at Samfiru Tumarkin LLP, you can avoid the pitfalls of appealing on your own and increase your likelihood of securing the benefits you deserve.

How our mortgage life insurance lawyers can help

At Samfiru Tumarkin LLP, our team of experienced mortgage life insurance lawyers in P.E.I. specializes in helping homeowners navigate claim denials. Here’s how we can assist:

• Free Consultation: We offer a no-obligation consultation to review your case and explain your options.
• Appeals and Disputes: We’ll handle the appeals process and negotiate with the insurer on your behalf.
• Litigation Support: If necessary, we’ll take your case to court to secure the benefits you deserve.
• Expert Guidance: Our lawyers will ensure your claim complies with policy terms and legal requirements.

Why choose Samfiru Tumarkin LLP for your mortgage insurance claim?

• Proven Success: We’ve helped thousands of clients in P.E.I. and across Canada—including Sandra Bullock, Florence Steele, Julie Austin, and Mitch Murphy—secure denied insurance benefits.
• No Upfront Fees: We operate on a contingency fee basis—you don’t pay unless we win.
• Dedicated Advocacy: We’re committed to safeguarding your financial security.

As Canada’s most positively-reviewed insurance and disability law firm, we can also help if you have an LTD, STD, critical illness or life insurance claim matter.

Contact us today

If your mortgage insurance claim has been denied, don’t navigate the process alone. We’ve won millions of dollars in compensation for clients across P.E.I., always focusing on achieving the full amount you deserve. Some of our lawyers have previously worked for some of the largest insurance companies—we’ve turned that expertise into your advantage. This gives us unique insight into their tactics and how to handle them effectively.

Contact us online for a free consultation, or call 1-855-821-5900, and let our P.E.I. mortgage life insurance lawyers help you secure the benefits you’re owed.