With replacement cost, do I really have to replace the item?
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Usually yes. To get replacement cost, you must replace it with an item of the same kind and quality within a reasonable time. A building generally has to be rebuilt on the same site. Otherwise the insurer pays actual cash value.
A general answer. Your policy always has the final say.
Related questions
A question about your own policy?
This site explains the general rules. Only your insurer can say what your policy covers: ask your agent or broker. This site doesn’t make recommendations. To choose coverage, also talk to a certified professional.
- Check an agent or broker: AMF register, at lautorite.qc.ca
- Insurance information: Autorité des marchés financiers
- General insurance questions: Centre d’information sur les assurances, 514-288-4321 or 1-877-288-4321
- Injuries in a car accident: SAAQ
- Professional conduct: Chambre de l’assurance de dommages