Replacement cost vs. market value: the home insurance gap that costs people their lives

Home insurance in Surrey should be built around replacement cost, not what your property might sell for. Market value includes land, location, demand, and neighbourhood trends. Replacement cost focuses on what it may take to rebuild the structure after a covered loss, including labour, materials, debris removal, bylaws, and professional fees.

That difference matters in the Lower Mainland because construction costs can move quickly. A home that sells for one amount may cost a very different amount to rebuild, especially if it has custom finishes, older materials, finished basements, detached structures, or code upgrades required after a loss.

A proper review should include square footage, year built, roof age, heating, plumbing, electrical updates, occupancy, rental suites, outbuildings, and special features. Condo owners and tenants need a different conversation around contents, improvements, additional living expenses, personal liability, and strata deductibles.

Water coverage is another area to review carefully. Sewer backup, overland water, flood-related wording, and earthquake options are not all the same. If you live near low-lying areas or have a finished basement, ask how each endorsement works and what deductibles apply.

PCI Brokers can review your current home insurance declaration page and help compare replacement cost, deductibles, liability limits, and optional endorsements across available BC markets.