Alberta family warning others to check their insurance policy, after business was destroyed by fire

An Alberta family is warning others to check their insurance policies, because they may not be as well covered as they had hoped.

Since 2008, the Dubitz family owned and operated Stephanie's Family Restaurant in the town of Bashaw. Business was going great until the economic downturn forced the family to close the restaurant in 2010.

"We just couldn't afford to keep it open," owner Don Dubitz explained, "It was a heartbreaker for all of us."

Don says his family had no choice but to close down the building and put it up for sale.

In May, the building was destroyed by fire.

"It was a really, really hard day. I was choking back a lot of tears," said Don's son Leon Dubitz.

Don says the building was fully insured for $400,000. After waiting months to hear back from his insurance company, Don was shocked with what his family was being offered.

Their insurance policy had a clause requiring the vacant building to be checked, a minimum of every 72 hours. The insurance adjuster said because this was not done, this entitles the insurers to void the policy.

The Dubitz family was offered the market value of the building, which is $96,000.

"(I'm) frustrated, very frustrated, very angry," said Don.

The Dubitz family is questioning the 72 hour clause. Don says the utilities were shut off and the building was secured after the family closed the restaurant. He says they checked on the building once or twice a week, and kept a journal of those dates.

"We secured everything after it got shut down. We put padlocks on everything and chains through the doors," Don said, "We'd check all that and if none of that was disturbed well, there was really no reason for us to go in."

"If there weren't any doors kicked in or there wasn't anything out of the ordinary, I mean, I didn't see a reason to go inside," added Leon.

"If we go and check it every 72 hours, and say five or 10 minutes, or half an hour after we check it somebody breaks in, really, what's the validity of the 72 hour check?" Don wondered.

Heather Mack with the Insurance Bureau of Canada says this type of clause is not unlikely. It also applies to many home insurance plans, with the main concern being water damage.

"The important thing is that you have a competent person actually enter the building, usually every 72 hours. But, you need to check your insurance policy to see what it specifically says," Mack said, "That person should enter the building, make sure that the heating is still on and that there isn't any water damage."

The insurance company involved in this case, Lloyd's of London, had no comment. The company is offering $96,000 plus the cost to clean up the site.

Don is warning others to be careful, and read through every section of your insurance policy.

"You're paying good money because you're thinking you're protection, and you're really not getting protection at all."

Don says the family still owes $250,000 dollars on the mortgage.

With files from Julie Matthews.