★ HOME INSURANCE · REPLACEMENT COST + CLAIMS IMPACT
Your house is worth $650k. But you insure for $415k.
Most homeowners get this wrong: you don't insure the market value — you insure the REBUILD cost. Land doesn't burn down. This page does the math right and shows why filing 2 claims can get you non-renewed.
★ THE BIGGEST MYTH ★
Market value ≠ insured amount
WRONGInsure to MARKET VALUEIncludes land, location premium, demand
If you insure your $650k home for $650k, you're over-paying premiums on $235k of land that can't burn down. Insurers won't pay you more than rebuild cost.
RIGHTInsure to REPLACEMENT COSTBuild materials + labor only
Calculate: sq ft × current cost per sq ft (typically $200-300 in Canada). Update every 3-5 years as building costs rise.
★ REPLACEMENT COST CALCULATOR ★
What to actually insure
Province
Coverage type
REPLACEMENT COST · INSURE THIS$416,250
LAND PORTION OF VALUE36%
ESTIMATED ANNUAL PREMIUM$1,264
MONTHLY$105
Rough estimate. Real quotes depend on roof age, plumbing, electrical, claims history, and lots more.
★ CHART · CLAIMS IMPACT ★
The cost of filing
0CLEAN · No claims
$1,264
0% vs clean
11 claim in 5 yrs
$1,516
20% vs clean
22 claims in 5 yrs
$1,959
55% vs clean
33+ claims · NON-RENEWAL
DENIED
Insurer drops coverage
Rule of thumb: don't file claims under $5,000. The premium increase often costs more than the payout over 3-5 years. Pay small losses out of pocket and reserve insurance for catastrophic events.