Home insurance

by David
(Aurora, Ontario, Canada)

If the amount for the coverage of Dwelling Building is more than the market price of the house, it is reasonable?


Ontario Home Insurance: Market Value vs Rebuilding Value


Hi David,

Yes, this happens a lot. Many houses are insured for more than market value.

Insurers have formulas for calculating rebuilding values and unless you live in a major market like Toronto or Vancouver it's easy to be insured over market value.

The formula includes increased costs like:


  • demolition of what's left of the building

  • Having to work around landscaping and neighbouring structures (unlike when a home is built new and there is lots of room to work)

  • Increased costs for getting contractors in on an urgent basis



  • This is just a small sample of increased costs that insurers have when rebuilding.

    Hope that sets your mind at ease!

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    Note: Keep in mind that insurance licensing, legislation, and policies often vary by province and most certainly by country. Canada Insurance Source is a free information source. So use this site to gain a general understanding of insurance with your own area and situation in mind. This insurance information is general in nature and the policy wordings always take precedence. It is possible that there are errors and omissions in this website and www.canada-insurance-source.com, or its authors, take no responsibility. Make sure you review the "please read" page.

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Note: Always speak with a licensed insurance professional about your specific situation. This insurance information is general in nature and the policy wordings always take precedence. It is possible that there are errors and omissions in this website and www.canada-insurance-source.com, or its authors, take no responsibility.

Keep in mind that insurance licensing, legislation, and policies often vary by province and most certainly by country. Canada Insurance Source is a free information source. So use this site to gain a general understanding of insurance with your own area and situation in mind.  Make sure you review the "please read" page. Always speak with a licensed insurance professional about your specific situation.

Always speak with a licensed insurance representative about your specific situation.

This site is general in nature and there may be errors or ommissions

Please Read

Compare insurance quotes through Kanetix.ca - save time and money!