“Accurate property valuations are critical,” Bhasin told IB. “Coverage is normally based on reconstruction costs, not market value. Professional valuations every two to three years are recommended. If a professional valuation isn’t possible, insurer-approved tools or third-party calculators can be used, factoring in current material and labour costs, local construction trends, and unique property features. Look at policy limits and coinsurance clauses to avoid significant out-of-pocket expenses, and make proactive risk reduction investments, such as fire suppression systems, flood barriers, and security upgrades, to improve insurability and potentially reduce premiums.”
