Guaranteed Replacement Cost on Dwelling Buildings

Pair and Set Clause

Most policies contain the following wordings when it comes to coverage being afforded on a Guaranteed Replacement Cost (GRC) basis for the Dwelling. GRC coverage is very important to you and to your Broker/Agent. If for some reason your policy does not afford adequate limits of coverage you and your agent/broker will be protected and there would be no need for you to pursue an Action against your Broker/Agent for their failure to properly insure your property

If Guaranteed Replacement cost is indicated in the Certificate of Property Insurance, we will pay the cost of repairs or replacement even if it is more than the amount of insurance for Coverage A, provided:

  • the amount of insurance for Coverage A shown on the Certificate of Property Insurance:
  1. on the inception date of the policy; or
  2. the most recent renewal date; or
  3. the increased amount under the inflation protection coverage on the date the increase took effect was not less than 100% of the cost to replace the dwelling building, as determined by a valuation guide acceptable to us;
  • the amount of insurance applicable to Coverage A has not been reduced below the amount determined by the valuation guide; and
  • you notified us within 30 days of the start of the work if any improvement, extension or addition has been made to your dwelling where the value of such improvement, extension or addition exceeds $10,000.
  • you repair or replace the damaged or destroyed building on the same location with a building of the same occupancy constructed with materials of similar quality within a reasonable time after the damage.

    • In determining the cost of repairs or replacement we will not pay or include the increased costs of repair or replacement due to the operation of any law regulating the zoning, demolition, repair or construction of buildings and their related services.

    Contact us should you have any questions or concerns. Become a member of Indemnity Canada so we can educate you further and get you prepared in case you suffer a loss. Also, as a member we will review your current policy so we can educate you on the coverages you purchased.

    © 2020. All rights reserved