When your account manager or the account executive makes recommendations on how much to insure your home it is based on the cost to rebuild. We can provide you with recommendations based upon the software we have. This program is a collection of values from the construction industry. It takes into consideration the size or square footage of your home and all of the features of your own individual home. It also takes into consideration the cost for materials, for removing the debris after a fire and for the cost of labour around your location.
You may question why this is important. Well when Insurance Companies decide how much premium to charge they will do so based on the fact that the changes of you having a complete loss are not all that great. So odds are you will only have partial damage in a fire loss or a claim. However if they do not base premiums on you insuring to full value they will not collect enough in premium to pay the claims. For this reason the insurance Companies do put a clause in that insists you insure to the full replacement cost as estimated by your broker. If you end up not insured to value and have a partial loss then you may find yourself in a disadvantaged position.
If you have complied with all of the conditions of your policy we recommend that you have Guaranteed Replacement Cost if it is available. This ensures that if the rebuilding value is more than what was estimated and insured for your Insurance Company will pay the additional cost to rebuild your home.
It is important that you report any changes you make to your building, such as an addition or flooring upgrades, customization features, saunas, whirlpools, and pools to your Account Manager.