Campbell Litigation

The Supreme Court of Canada recently clarified the limits of "guaranteed replacement cost" in property insurance. The Court ruled that even when a policy includes a guarantee, it is still subject to the specific exclusions listed in the contract.

In this case, the insurer was not responsible for the extra costs driven by new building codes because the policy explicitly excluded expenses related to bylaws and regulations. This decision highlights that "guaranteed" coverage does not always mean "unlimited" and that standard exclusions still apply after a total loss.

Our latest blog post explains how to identify these gaps in your insurance coverage:

Guaranteed Replacement Cost Insurance Limits | SCC Clarifies SCC clarifies limits of guaranteed replacement cost insurance and compliance cost exclusions in Emond v. Trillium. Learn your rights.