A Canadian homeowner and her boyfriend found themselves needing to rebuild after a devastating fire. Unfortunately for them, it cost thousands of dollars out of pocket—despite the fact that insurance had approved the full cost of the work.
The troubles began in February 2024, when a fire began in the neighboring half of Antonia Gladkova’s semi-detached home in Georgetown, Ontario. It reached her home, destroying property and lives in the process—one of her neighbors sadly died in the blaze, CBC News reports.
Jump ahead over a year, and insurance had approved the hundreds of thousands of dollars needed to rebuild Gladkova’s home. The Bank of Canada estimates it at about $367,000 USD. Because the property had a mortgage, lender Simplii Financial was responsible for releasing the insurance money as construction progressed.
That reportedly did not happen, however. Gladkova says those payments did not keep pace with her contractor’s bills. To keep the repairs moving, she and her boyfriend ultimately took out a private mortgage at a 10% interest rate.
The Insurance Money Was There — But Not When They Needed It
Embedded media follows. Please allow a moment for it to load.
The contractor’s first payment was $101,600 CAD, or about $73,400 USD. Bank statements reviewed by CBC News show that Simplii initially released only $25,000 CAD, or about $18,100.
After Gladkova raised the issue, Simplii released another $25,000 CAD as a one-time exception. This, however, still left the couple $51,600 CAD short of the contractor’s bill, and Simplii declined their request to release the remainder, according to CBC News.
After a formal complaint, Simplii adjusted how it released the money. Payments were tied to the percentage of construction completed. However, CBC News writes that emails between Gladkova and Simplii indicate the bank calculated those payments using the first insurance check instead of the full, approved amount. This, according to Gladkova, left the couple continually short for the contractor bills.
Eventually, Simplii released the full amount. Construction wrapped up in June, which CBC News writes was six months behind the schedule outlined in the contract.
The House is Rebuilt, but the Costs Remain
When the dust settled, Gladkova and her boyfriend reportedly paid about $15,000 CAD, or $10,800 USD, in interest on the private mortgage. That’s in addition to thousands more in setup, plus additional legal costs. She says they also still owe their contractor thousands because of the delays.
Simplii spokesperson Kira Smylie said in a statement that “wherever possible, we work with our clients to provide flexibility, and we did so in this case.”
“Before finalizing the payment terms with a contractor,” Smylie further advised, “clients should confirm the payment schedule with us so they can make informed decisions.”