Can I ask someone to pay for my higher insurance premiums after they caused damage to my home?

Possibly — and it's worth pursuing. If your neighbour's carelessness caused the damage, you may be able to claim compensation for the higher premiums that resulted. 

When someone's negligence causes damage to your home, you can ask them to cover more than just the repair costs. You can also claim other financial losses that flowed from their actions — including a premium increase.

To succeed, you'd generally need to show:

• Your neighbour was negligent (such as leaving a hose running unattended).

• Their negligence caused the damage to your home.

• Your insurance premiums went up because of the claim for that damage.

Steps to take

Get confirmation from your insurer in writing. Ask your insurance company to confirm in writing that your premium increase is tied to this specific claim. You'll need this documentation if you pursue your neighbour.

Calculate your total loss. Find out how long the increase will last — insurers often apply higher rates for several years after a claim. Add up the extra amount you'll pay over that period. That's what you can ask your neighbour to cover.

Ask whether your insurer is pursuing your neighbour. When an insurer pays out a claim, they sometimes try to recover their costs from the person responsible. Ask whether that's happening and whether your increased premiums could be included in any recovery efforts.

Before you take formal steps

Consider talking to your neighbour first. A legal claim can put a real strain on a neighbourly relationship. Before going that route, try explaining the situation and asking whether they're willing to contribute to the extra costs. You may be able to reach an agreement without starting a formal dispute. Here are some tips for having a difficult conversation with a neighbour, including a template to help you prepare.

If your neighbour won't pay voluntarily, you have options. You could bring a claim to the Civil Resolution Tribunal — a low-cost, online option for resolving disputes like this. You can claim up to $5,000, and the tribunal can award damages when you prove a financial loss and that someone else is legally responsible for it. Here’s guidance on bringing a claim to the CRT.

One thing to keep in mind: your neighbour may argue that your increased premiums are too uncertain or weren't caused by their actions. That's why written confirmation from your insurer — linking the premium increase to this specific claim — can be important evidence.