Ottawa homeowner Cory Porter's insurance company has reinstated his policy after cutting ties when Porter reported a cracked foundation.

According to Porter, a representative from The Dominion of Canada General Insurance Company contacted him Thursday and apologized for the situation.

The spokesman blamed the cancellation on a "procedural error," according to Porter. But it remains unclear whether the company will pay for the $20,000 to $30,000 in damages.

Cory Porter says his insurance company is going to reinstate his policy after a CBC News story Wednesday, which explained how the company cancelled the policy due to a perceived increase in risk. (CBC)

On Wednesday, CBC News reported the company dropped Porter as a client in the wake of his foundation woes.

An unusually dry summer precipatated the damage to Porter's South Keys home as nearby trees were so thirsty their roots burrowed under the foundation to absorb moisture in the clay beneath.

Porter discovered the cracks in August after returning from a vacation and he reported the matter to his insurer, which inspected the home.

"We told the insurance company about the problem and made it pretty clear we were moving to have it fixed," Porter told CBC News on Wednesday. "Then boom, out of nowhere, they cancel our policy. We’re in shock and disbelief."

Porter received a notice of cancellation in the mail from the company.

The Insurance Bureau of Canada said insurance companies have the right to cancel policies whenever they see fit.

Pete Karageorgos, an industry and consumer relations manager based in Toronto, told CBC News if there is a change in risk to a home and the insurer was not made aware of it, they can cancel the contract.

But Porter said he was relieved to have his insurance coverage back and the company told him to call them with an update on repairs in the coming months.

Porter has lived in the 33-year-old home for six years and said one of the trees responsible for the damage belongs to the city, a factor that could provide for compensation from local government.

"If the city tree was a contributing factor then there is a claims process and the city will assist in covering the costs,” said Diane Deans, councillor for Gloucester-Southgate.

With files from the CBC's Ashley Burke