Insurable Value Appraisal in Drummondville
A certified appraisal of insurable value ensures your Drummondville property is covered for the right amount: neither over-insured nor under-insured. Our OEAQ certified appraisers calculate the replacement cost new of your building to protect you in case of total loss.
Understanding the Different Values
Market value
The price a property would sell for in a normal market. This value considers location, land, and market conditions. It is NOT the amount to insure.
Replacement cost new
The cost to rebuild the building from scratch with equivalent materials and quality at today's prices. This is the figure your insurance policy should cover.
Municipal assessment
A value established by the city for tax purposes. It does not represent market value or replacement cost and should never be used for insurance coverage.
Risks of Inadequate Coverage
Under-insurance
If your coverage is lower than replacement cost, you will bear the difference out of pocket after a loss. Insurers may also apply a co-insurance penalty, reducing your payout further.
Over-insurance
Insuring above replacement cost means paying higher premiums for coverage you can never collect on.
Rising construction costs
Material and labour costs have risen significantly in recent years. A policy based on outdated figures may leave you exposed.
Act 141 compliance
Condominiums in Québec must maintain an insurance coverage amount validated by a certified appraiser under Act 141 (Building Maintenance Act). Non-compliance exposes the syndicate to risk.
Who Needs an Insurable Value Appraisal?
Homeowners
Ensure your home insurance policy covers the actual cost to rebuild your house.
Condo syndicates
Act 141 requires syndicates to have the building's replacement cost appraised by a certified appraiser.
Landlords and investors
Protect your rental income by ensuring adequate coverage on your multi-unit building.
Commercial property owners
Offices, retail spaces, and industrial buildings all need accurate replacement cost estimates for proper coverage.
Insurance brokers
A certified report allows you to offer your clients accurate coverage and demonstrate due diligence.
Property managers
Responsible for insuring managed properties? A certified insurable value report gives you a defensible coverage amount.
How the Appraisal Works
01. Request
Tell us about your property and its current insurance coverage. We provide a quote within 24 hours.
02. Inspection
We visit the property to document its characteristics: construction type, materials, finishes, mechanical systems, and any special features.
03. Cost calculation
Using recognized cost manuals and local construction data, we calculate the replacement cost new of the building.
04. Report
We deliver a detailed report signed by an OEAQ certified appraiser, ready to share with your insurer or broker.
Frequently Asked Questions
How often should I update my insurable value?
Every 3 to 5 years, or after major renovations. Construction costs evolve, and an outdated appraisal may leave you under-insured.
Is insurable value the same as market value?
No. Insurable value is the replacement cost of the building alone, excluding land. Market value includes land and reflects supply and demand. The two figures can differ significantly.
What is Act 141 and how does it affect condos?
Act 141 (Building Maintenance Act) requires Québec condo syndicates to obtain a replacement cost appraisal from a certified appraiser to validate insurance coverage. Learn more about Act 141.
Need an insurable value appraisal in Drummondville?
Contact us today for a certified replacement cost report.