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Why are there so many Tornado’s in Saskatchewan?

Saskatchewan is experiencing an unusually active tornado season.

As of July 14, 2026, 27 tornadoes had been confirmed across the province—far above Saskatchewan’s typical yearly total of approximately 13 to 17. Additional storm investigations are still being completed, meaning that number may continue to rise.

The season has also produced several stronger storms. An EF3 tornado struck the North Portal–Oxbow area on June 9, making it Saskatchewan’s first confirmed EF3 tornado since 2010. More recently, EF1 tornadoes near Speers, Redberry Lake and Petrofka–Waldheim caused damage to homes, businesses, farm properties, vehicles, trees and power infrastructure.

These events are an important reminder that severe weather can develop quickly and affect communities across Saskatchewan with little warning.

Why Has This Tornado Season Been So Active?

Meteorologists have pointed to several conditions that have contributed to this year’s severe storms.

After several relatively dry years, Saskatchewan experienced increased moisture through the winter, spring and early summer. Moisture from growing crops has also entered the atmosphere, while the position of the jet stream has helped create conditions favourable for severe thunderstorms and tornado development.

While not every severe thunderstorm will produce a tornado, Saskatchewan residents should remain prepared whenever watches or warnings are issued.

Know the Difference Between a Watch and a Warning

A tornado watch means conditions are favourable for tornado development. Stay alert, monitor the forecast and be prepared to take shelter.

A tornado warning means a tornado is occurring or is expected soon. Take shelter immediately.

Make sure emergency alerts are enabled on your phone and pay attention to updates from Environment and Climate Change Canada, SaskAlert and local authorities.

What to Do During a Tornado

When a warning is issued, move to the lowest level of a sturdy building. A basement is the best option. When a basement is unavailable, choose a small interior room away from windows and exterior walls.

Get underneath sturdy furniture when possible and use your arms to protect your head and neck.

Never open windows and do not use an elevator. Those living in a mobile home should leave immediately and seek shelter in a nearby sturdy building.

When driving, do not attempt to outrun a tornado. Seek shelter in the nearest solid building when possible. Never shelter underneath a bridge or overpass, as winds and flying debris can become even more dangerous in those locations.

What to Do After the Storm

Your safety should always come first. Remain sheltered briefly after the tornado has passed, as dangerous winds, debris or additional storms may still be present.

When it is safe to leave your shelter:

  • Watch for unstable buildings, damaged trees and sharp debris.
  • Stay at least 10 metres away from downed power lines.
  • Do not enter a damaged building until it is considered safe.
  • Avoid matches, lighters and electrical switches if you suspect a gas leak.
  • Continue monitoring emergency alerts and follow the instructions of local officials.

If Your Property Has Been Damaged

Once everyone is safe, contact your insurance representative as soon as possible. Your broker can help explain your coverage, begin the claims process and guide you through the next steps.

Before cleaning up or making permanent repairs:

  1. Document the damage. Take detailed photos and videos of your home, farm, business, vehicle and damaged belongings.
  2. Make a written list. Record what was damaged or destroyed, including approximate purchase dates and values when possible.
  3. Keep damaged items. Do not dispose of anything unless it presents an immediate health or safety risk.
  4. Prevent further damage. When it is safe, take reasonable temporary steps such as covering a damaged roof or boarding up broken windows. Hire a qualified professional when the work is unsafe.
  5. Save every receipt. Keep receipts for emergency repairs, cleanup, hotel stays, meals and other temporary expenses.
  6. Speak with your adjuster before permanent repairs. Confirm what work is covered and what documentation will be required.

Coverage, deductibles and policy limits can vary, so it is important to speak directly with your insurance representative about your specific situation.

Review Your Insurance Before the Next Storm

The best time to review your insurance is before severe weather is approaching.

Check that your home, farm, business and vehicles are properly insured. Ask whether your replacement costs and coverage limits remain appropriate, and make sure you understand your deductibles and any optional coverage included in your policy.

It is also a good idea to create a home or business inventory. Photos, videos, receipts and serial numbers can make the claims process much easier if you ever experience a loss.

Block’s Agencies Is Here to Help

Severe weather can be stressful, but you do not have to navigate the insurance process alone.

If your home, farm, business or vehicle has been affected by a storm, contact your local Block’s Agencies office. Our team can help you report your claim, understand the next steps and work through the process with confidence.

Stay alert, stay prepared and stay safe, Saskatchewan.

Poor Workmanship and Home Insurance: Why Construction Quality Matters

A home can look finished while still containing serious construction defects.

Improperly installed roofing, windows, siding, flashing or waterproofing may not cause visible damage immediately. Problems may only appear after heavy rain, melting snow, strong winds or several freeze-and-thaw cycles.

When water eventually enters the home, the owner may assume the damage will automatically be covered by insurance.

Unfortunately, that is not always the case.

Property insurance is not a warranty for poor workmanship, defective construction or improper installation.

Depending on the cause of the damage and the policy wording, a claim may be partially covered, restricted or denied.

Insurance Is Not a Construction Warranty

Home insurance is generally intended to respond to insured events, not to guarantee that a home was properly designed or constructed.

The responsibility for properly completing construction may rest with:

  • The contractor
  • The subcontractor
  • The builder
  • The installer
  • The designer
  • The manufacturer
  • The property owner performing the work

A construction defect does not necessarily become an insured loss simply because it is expensive to correct.

For example, insurance would not normally be expected to pay the cost of removing and reinstalling shingles solely because they were installed incorrectly.

Similarly, insurance may not pay to replace improperly installed windows simply because they allow water to enter.

The homeowner may need to pursue the contractor, installer, builder or applicable warranty provider.

Poor Workmanship Does Not Automatically Void the Entire Policy

It is important to use accurate language.

Poor workmanship does not necessarily void all insurance on the property.

Instead, the policy may exclude:

  • The cost of correcting the defective work
  • Damage to the defective component itself
  • Gradual or repeated water seepage
  • Rot, mold or deterioration
  • Damage that should have been prevented through maintenance
  • Some or all resulting damage, depending on the wording

Some policies distinguish between the defective work and separate resulting damage. Others contain broader exclusions.

The insurer must investigate the cause, timing and extent of the damage before determining coverage.

Improper Shingle Installation

A roof is a system—not simply a layer of shingles.

A claim may be affected when an investigation finds that roofing materials were:

  • Improperly fastened
  • Installed with too few fasteners
  • Installed using incorrect fasteners
  • Installed over an unsuitable surface
  • Installed without the required underlayment
  • Improperly sealed
  • Installed on an unsuitable roof slope
  • Installed contrary to manufacturer requirements
  • Improperly installed around valleys, vents or roof penetrations

A low-slope roof may require a different roofing system or additional installation measures. Shingles should be selected and installed based on the roof design and manufacturer’s requirements.

If shingles lift or water enters because the roof was never properly installed, the damage may be treated differently from shingles that were properly installed and later damaged by an unusually severe windstorm.

The cause of the failure matters.

Roof Flashing and Penetrations

Many roof leaks occur around transitions or penetrations rather than through the middle of the roofing material.

Areas of concern include:

  • Chimneys
  • Plumbing vents
  • Skylights
  • Roof valleys
  • Dormers
  • Wall-to-roof intersections
  • Satellite or equipment mounts
  • Exhaust vents
  • Changes in roof elevation

Missing or improperly installed flashing can allow water to enter behind the roofing system.

Caulking alone is not always an adequate substitute for properly designed and installed flashing.

Water may travel some distance from the entry point before becoming visible inside the home, making the source difficult to identify without a proper inspection.

Improper Window and Door Installation

Windows and exterior doors must be integrated into the building envelope.

Problems can occur when:

  • Flashing is missing
  • Flashing is installed in the wrong sequence
  • Drainage paths are blocked
  • Openings are not properly sealed
  • The window is installed out of square
  • Exterior membranes are improperly connected
  • Water is directed behind the cladding
  • Interior moisture is mistaken for exterior water entry

Improper window installation may allow small amounts of water to enter repeatedly.

The first visible sign could be:

  • Stained drywall
  • Bubbling paint
  • Soft trim
  • Swollen flooring
  • Mold
  • Rot inside the wall
  • Moisture below the window

By the time these signs appear, the problem may have existed for months or years.

Gradual or repeated seepage and deterioration are commonly treated differently from sudden accidental water damage. IBC notes that insurance is intended for sudden and accidental damage, while ongoing or repeated moisture problems may be considered maintenance issues and may not be covered. Siding and Exterior Cladding

Siding is not merely decorative. It is part of a system intended to manage water and protect the building envelope.

Potential problems include:

  • Missing or improperly installed building paper or membrane
  • Incorrect flashing above windows and doors
  • Improper clearances from roofs, decks or the ground
  • Blocked drainage or ventilation paths
  • Incorrect fasteners
  • Loose panels
  • Unsealed penetrations
  • Improper transitions between materials
  • Stucco cracking or separation
  • Water being trapped behind the cladding

Water behind siding can damage sheathing, insulation, framing and interior finishes.

Replacing the interior drywall does not solve the problem if the exterior construction defect remains.

Decks, Balconies and Additions

Decks and balconies attached to a home can create water-entry points.

Concerns may include:

  • Improper ledger attachment
  • Missing flashing
  • Water directed toward the building
  • Poor waterproofing
  • Inadequate drainage
  • Improper connections between old and new construction

Additions can also create problems where the new roof, wall or foundation connects to the original structure.

These transition areas should be carefully designed, flashed and inspected.

Bathrooms and Showers

Improper waterproofing is another common source of damage.

Tile and grout are not always the primary waterproofing system. Water management may depend on membranes, pans, drains and properly completed transitions behind the visible finish.

Warning signs may include:

  • Loose tile
  • Cracked grout
  • Soft flooring
  • Staining below the bathroom
  • Swollen baseboards
  • Persistent musty odours
  • Moisture on adjacent walls

A shower that gradually leaks because it was improperly constructed may not be treated the same as sudden water damage from a burst supply line.

Renovations Completed by the Property Owner

Do-it-yourself construction is not automatically excluded from insurance.

However, work should still comply with:

  • Building codes
  • Permit requirements
  • Manufacturer instructions
  • Accepted construction practices
  • Electrical, plumbing and heating requirements

Performing the work personally does not transfer the cost of correcting mistakes to the insurance company.

Before completing major work, property owners should consider whether the project requires a qualified or licensed trade.

Permits and Inspections

Required permits and inspections should be obtained.

These may include:

  • Building permits
  • Electrical permits
  • Plumbing permits
  • Gas permits
  • Heating-system inspections
  • Wood-burning appliance inspections

A permit or municipal inspection can be valuable, but it does not necessarily provide a comprehensive warranty for every part of the work.

Property owners should also retain:

  • Contracts
  • Drawings
  • Invoices
  • Product information
  • Installation manuals
  • Inspection reports
  • Photographs taken before walls are closed
  • Written warranties

These records may be helpful if a defect is discovered later.

Warning Signs Homeowners Should Investigate

Watch for:

  • Water stains
  • Peeling or bubbling paint
  • Soft drywall
  • Swollen trim
  • Musty odours
  • Visible mold
  • Loose or lifting shingles
  • Missing shingles
  • Cracked exterior caulking
  • Water around windows
  • Discoloured ceilings
  • Rotting exterior materials
  • Efflorescence on concrete
  • Unexpected frost or condensation
  • Repeated leaks in the same area

Do not repeatedly patch or paint over the symptom without determining the source.

A small stain can be evidence of a much larger concealed problem.

Buying a Home

Before purchasing a property, consider obtaining an inspection from a qualified professional.

Pay particular attention to:

  • The age and condition of the roof
  • Roof slope and roofing type
  • Flashing
  • Windows and exterior doors
  • Siding and stucco
  • Foundations
  • Deck and balcony connections
  • Recent additions
  • Finished basements
  • Renovated bathrooms
  • Evidence of previous water damage

Ask the seller for:

  • Renovation permits
  • Contractor invoices
  • Warranty information
  • Inspection records
  • Dates of major improvements
  • Details of previous water entry

A standard home inspection may not uncover every concealed defect, but it can identify visible warning signs and areas requiring further review.

Hiring a Contractor

Before work begins:

  • Verify the contractor’s experience
  • Request references
  • Obtain a written scope of work
  • Confirm who is responsible for permits
  • Ask for proof of liability insurance
  • Request warranty information
  • Confirm products will be installed according to manufacturer requirements
  • Document the work with photographs
  • Keep all invoices and contracts

The lowest quotation is not always the least expensive option when improper construction later requires extensive repairs.

What to Do When You Discover Damage

When water entry or another construction-related problem is discovered:

  1. Take reasonable steps to prevent additional damage.
  2. Photograph the affected areas.
  3. Avoid permanently covering or destroying evidence before it is documented.
  4. Contact your broker or insurer promptly.
  5. Keep damaged materials when requested.
  6. Obtain a qualified assessment of the source.
  7. Locate contracts, invoices, warranties and inspection documents.
  8. Contact the contractor or warranty provider where appropriate.

Do not assume a claim is covered or denied before the cause has been investigated.

Review the Construction of Your Home

Property owners should periodically review the condition and quality of:

  • Roofing
  • Flashing
  • Windows
  • Exterior doors
  • Siding
  • Stucco
  • Caulking
  • Deck connections
  • Balconies
  • Showers
  • Foundations
  • Recent renovations

Finding and correcting improper construction before it causes significant damage is usually far less costly than discovering after a loss that the repairs are not insured.

Home insurance provides essential protection against many unexpected losses, but it is not a substitute for quality construction, proper installation, regular inspection or ongoing maintenance.

Every claim depends on its cause and the specific policy wording. Speak with your insurance broker about your coverage and consult a qualified construction professional when you have concerns about your home.

Material Changes: What Changes to Your Property Must Be Reported?

Buying property insurance is not a one-time transaction that can be forgotten until a claim occurs.

Your insurance policy is based on the information provided about the property when the coverage was arranged. If the occupancy, use, heating, construction or overall risk changes, the insurer may need to review the policy.

One of the most important questions property owners should ask is:

“Has anything changed that my insurance broker needs to know about?”

Failing to report an important change could restrict coverage, change how a claim is settled or cause coverage for the affected portion of the risk to become void.

What Is a Material Change in Risk?

A material change in risk is generally a change that would influence an insurer’s decision to:

  • Continue insuring the property
  • Change the premium
  • Add conditions or exclusions
  • Require an inspection
  • Change the deductible
  • Reduce or restrict coverage
  • Cancel or decline the risk

Saskatchewan’s statutory conditions require an insured to promptly notify the insurer or its agent in writing of a change that is material to the risk and within the insured’s control and knowledge. If the insurer is not promptly notified, the contract may be void as to the portion affected by the change. every small change is material. However, property owners should not be expected to determine materiality on their own.

When in doubt, contact your broker.

A Change in Occupancy

How a property is occupied is one of the most important parts of an insurance application.

Different policies and underwriting rules apply to properties that are:

  • Owner-occupied
  • Tenant-occupied
  • Seasonally occupied
  • Used as a secondary residence
  • Used for short-term rentals
  • Unoccupied
  • Vacant
  • Under renovation or construction

Homeowners, landlords, tenants and seasonal-property owners require different forms of coverage. IBC identifies separate insurance arrangements for owner-occupied homes, rented dwellings, seasonal residences and other occupancy types. Renting Out Your Home

A homeowner policy may not be appropriate once the owner moves out and tenants move in.

The insurer may need to change the policy to a rented-dwelling or landlord form. Coverage for the building, contents, rental income, vandalism, water damage and liability may differ.

You should report:

  • Renting the entire home
  • Renting a basement suite
  • Adding a secondary suite
  • Taking in boarders
  • Renting rooms
  • Beginning short-term or vacation rentals

Do not assume an online rental platform’s protection replaces a proper property insurance policy. Specialized home-sharing coverage may be required. Vacancy and Unoccupancy

A vacant property and an unoccupied property are not always treated the same way.

A home may be temporarily unoccupied while the owner is travelling but still contain furniture and show evidence that the owner intends to return.

A vacant home may have no occupants, little or no furniture and no immediate intention of being used as a residence.

Vacancy can significantly change the risk of:

  • Undetected water damage
  • Theft
  • Vandalism
  • Fire
  • Unauthorized entry
  • Delayed discovery of damage

Policies may restrict or exclude certain losses after a property becomes vacant. The applicable period and requirements vary by insurer and policy, so vacancy should be reported immediately rather than waiting for a specific number of days.

Changes to Heating

Heating systems are an important underwriting consideration.

Contact your broker before:

  • Installing a wood stove
  • Adding a wood-burning fireplace
  • Using wood heat as a primary or auxiliary heat source
  • Installing an outdoor wood boiler
  • Converting to oil heat
  • Installing or replacing an oil tank
  • Changing from one primary heating system to another
  • Discontinuing regular heat to part of the building

The insurer may require:

  • Professional installation
  • Permits
  • Inspections
  • Photographs
  • Installation certificates
  • Information about clearances and protective materials
  • Details about the age, type and location of an oil tank
  • Confirmation that the system complies with applicable standards

Do not wait until a claim to mention a wood stove or oil tank that was not disclosed on the application.

Renovations, Additions and Construction

Major renovations can change both the risk and the rebuilding cost.

Report projects such as:

  • Building an addition
  • Finishing a basement
  • Adding a bathroom or kitchen
  • Removing structural walls
  • Replacing electrical or plumbing systems
  • Adding a swimming pool
  • Building a garage or shop
  • Adding a rental suite
  • Completing major exterior renovations
  • Leaving the home partially exposed during construction

A standard homeowner policy may not provide appropriate coverage during a major renovation or construction project. A course-of-construction or builder’s risk policy may be required. IBC recommends arranging the proper coverage before construction or significant renovation work begins. ovations can also increase the amount required to rebuild the home. An updated kitchen, finished basement, addition or upgraded interior should be included in the replacement-cost valuation.

Changes in How the Property Is Used

Tell your broker when the activities taking place at the property change.

Examples include:

  • Starting a home-based business
  • Storing business inventory
  • Having customers regularly attend the property
  • Operating a daycare
  • Adding farming or agricultural activity
  • Boarding animals
  • Operating a workshop
  • Renting storage space
  • Using an outbuilding commercially
  • Increasing the number of families or unrelated occupants

A homeowner policy may provide little or no coverage for business property or business-related liability. The Government of Canada warns that standard home insurance generally does not cover home-based business claims and may provide only limited coverage for business equipment. Changes to Protective Systems

Changes to protective devices should also be reported, particularly when a discount or policy condition depends on them.

Examples include:

  • Disconnecting a monitored alarm
  • Removing a sump pump or backup system
  • Disconnecting a water-leak detection system
  • Changing the electrical service
  • Removing a backwater valve
  • Disconnecting sprinklers
  • Allowing a heating-monitoring system to lapse

A discount based on a protective system assumes that the system remains installed and operational.

Updating the Home Without Updating Its Valuation

A material change is not limited to something that makes the property more hazardous.

Improvements can also create underinsurance.

A home insured using information from ten years ago may no longer reflect:

  • A new addition
  • A finished basement
  • A renovated kitchen
  • Additional bathrooms
  • Upgraded flooring
  • Custom cabinetry
  • High-end finishes
  • New detached structures
  • Increased square footage

Replacement cost is the estimated amount required to rebuild the home—not its market value or tax assessment. Wawanesa notes that replacement cost is distinct from market and tax-assessment values and should be reviewed with the broker. ling to update the valuation could affect policy limits, eligibility for Guaranteed Replacement Cost or the application of a co-insurance clause.

Maintenance Is Different From a Material Change

Wear and tear is not always a “material change” in the statutory sense.

However, the deteriorating condition of a property can still affect:

  • Whether damage is covered
  • Whether depreciation is applied
  • Whether the insurer will renew the policy
  • Whether repairs are required
  • Whether certain components remain eligible for Replacement Cost

Insurance is intended primarily for unexpected or accidental losses. It is not a maintenance contract or home warranty. The Government of Canada explains that home insurance generally does not cover predictable events related to home maintenance. Wear, Tear and Gradual Deterioration

Property owners are responsible for maintaining their buildings and systems.

Common maintenance-related issues include:

  • Worn-out shingles
  • Deteriorated siding
  • Failed exterior caulking
  • Rot
  • Rust
  • Corrosion
  • Gradual cracking
  • Repeated seepage
  • Deteriorated plumbing
  • Aging seals and gaskets
  • Failed grout
  • Long-term moisture problems
  • Mold resulting from unresolved moisture
  • Mechanical breakdown from age or lack of servicing

The presence of deterioration does not necessarily mean every claim will be denied. A separate sudden event may still be covered.

However, the insurer may distinguish between sudden insured damage and the condition that existed before the loss.

Resulting Damage Versus the Worn-Out Component

Sometimes insurance may cover resulting damage but not the component that failed.

For example, a sudden plumbing failure may cause water damage to flooring and drywall. Depending on the policy, the resulting water damage may be covered while the cost of replacing the worn-out pipe or failed component is not.

Similarly, IBC explains that interior water damage resulting from a roof leak may be covered in some circumstances while the deteriorated roof itself may not be covered when its condition is due to wear and tear or poor maintenance. distinction depends on the cause of loss and the policy wording.

Depreciated Materials May Affect the Settlement

Older building materials may be insured differently from newer materials.

An insurer may:

  • Apply depreciation
  • Settle certain items on an Actual Cash Value basis
  • Apply a roof or exterior-surface settlement schedule
  • Restrict Replacement Cost
  • Require replacement before renewal
  • Exclude a deteriorated component
  • Increase the deductible

Common examples include older:

  • Roofing
  • Plumbing
  • Electrical systems
  • Heating equipment
  • Oil tanks
  • Water heaters
  • Exterior siding

Maintaining insurance does not guarantee that every aging component will be replaced with a brand-new one after a claim.

Review Your Property Regularly

Property owners should periodically inspect:

  • Roofing and flashing
  • Eavestroughs and downspouts
  • Windows and doors
  • Exterior caulking
  • Siding and stucco
  • Plumbing connections
  • Water heaters
  • Oil tanks
  • Heating systems
  • Foundations
  • Sump pumps and backwater valves
  • Decks, balconies and attached structures

Document significant upgrades with:

  • Photographs
  • Receipts
  • Permits
  • Inspection reports
  • Contractor invoices
  • Warranty documents

These records can help establish when work was completed and the condition of the property before a loss.

Changes You Should Report

Contact your broker when:

  • You move out
  • A tenant moves in
  • The home becomes vacant
  • You begin short-term rentals
  • You add a suite
  • You install wood heat
  • You install or replace an oil tank
  • You begin a major renovation
  • You add a garage, shop or addition
  • You start operating a business
  • The use of an outbuilding changes
  • You disconnect an insured protective device
  • You make significant improvements
  • You are unsure whether something affects the policy

Reporting a change does not automatically mean coverage will be cancelled. It gives the broker and insurer an opportunity to review the change and arrange suitable coverage before a claim occurs.

Every insurance policy is different. The declarations, policy wording, endorsements and applicable legislation determine how a change affects coverage.

How Is a Property Insurance Claim Settled?

When property is damaged, one of the first questions customers ask is:

“How much money will my insurance company pay for this claim?”

The answer depends on more than the cost shown on a contractor’s estimate.

The insurer must first confirm that the cause of the damage is covered. Once coverage has been established, the insurer must determine the appropriate basis of settlement.

Depending on the policy and circumstances, the insurer may:

  • Repair the damaged property
  • Replace the damaged property
  • Provide an Actual Cash Value settlement
  • Pay Replacement Cost after repairs or replacement are completed
  • Rebuild a dwelling under Guaranteed Replacement Cost coverage
  • Apply a co-insurance calculation if the property was underinsured

The deductible, policy limits, exclusions, special limits and other conditions may also affect the final payment.

Coverage Comes Before Settlement

The basis of settlement only becomes relevant after the insurer determines that the damage resulted from an insured cause of loss.

For example, Replacement Cost coverage does not mean every old roof, appliance or building component will automatically be replaced. There must first be covered damage.

Once coverage is confirmed, the insurer evaluates:

  • What was damaged
  • The extent of the damage
  • The condition immediately before the loss
  • Whether repair is possible
  • The cost of repair compared with replacement
  • The settlement provisions in the policy
  • The applicable coverage limit and deductible

Every claim is assessed based on its own circumstances and policy wording.

Repair Versus Replacement

Property insurance is generally intended to return insured property to approximately the condition it was in immediately before the loss.

It is not intended to improve the property or make every undamaged part of it brand new.

When damaged property can be properly and safely repaired, the insurer may choose to repair it rather than replace it.

For example:

  • Several damaged shingles may be repaired without replacing the entire roof.
  • One damaged cabinet door may be repaired or replaced without replacing every cabinet.
  • Damage to one wall may not require painting the entire home.
  • A damaged appliance component may be repaired instead of replacing the appliance.
  • A section of flooring may be repaired when a reasonable repair is possible.

The insurer will generally consider the extent of the covered damage, the availability of comparable materials, the pre-loss condition of the property and the cost of repair compared with replacement.

Replacement Cost coverage does not necessarily give the policyholder the right to demand complete replacement when a reasonable repair can restore the property.

What If the Materials Do Not Match?

A repair may not always create a perfect visual match with older materials.

Roofing, siding, flooring, paint and cabinetry can fade, weather or change over time. Even when the same product is available, new materials may look different from materials that have been exposed to sunlight and normal use.

Some policies provide limited coverage for matching undamaged materials. Others may restrict or exclude matching coverage.

Damage to one area does not automatically mean all similar materials throughout the home must be replaced. The outcome depends on the extent of damage, available materials and the policy wording.

What Is Actual Cash Value?

Actual Cash Value, commonly called ACV, generally reflects the value of the damaged property immediately before the loss.

It is commonly calculated using the current cost of a comparable item, less depreciation for its age and condition. reciation may consider factors such as:

  • Age
  • Physical condition
  • Wear and tear
  • Expected useful life
  • Quality
  • Maintenance history
  • Functional or technological obsolescence

Suppose an eight-year-old television is damaged by an insured fire. A comparable new television might cost $1,500, but the television that was damaged was not worth $1,500 immediately before the loss.

An ACV settlement would consider its depreciated value.

The same approach may apply to:

  • Roofing
  • Flooring
  • Appliances
  • Furniture
  • Electronics
  • Clothing
  • Tools
  • Other household property

An Actual Cash Value settlement may not provide enough money to purchase a brand-new replacement.

What Is Replacement Cost?

Replacement Cost coverage generally pays the reasonable cost to repair or replace eligible damaged property with property of similar kind and quality, without deducting depreciation.

It does not necessarily pay:

  • The item’s original purchase price
  • The most expensive replacement available
  • The newest or most advanced model
  • The cost of an upgrade
  • The full replacement cost when a proper repair is possible

The replacement should normally be reasonably comparable to what was damaged.

For example, if a five-year-old television is destroyed by an insured loss, Replacement Cost coverage may pay for a current television with comparable size, features and quality. It would not necessarily pay for a substantially larger or more advanced model. The Government of Canada describes replacement value as the cost of replacing an insured item following a covered loss with an item of similar quality. Replacement Cost May Be Paid in Stages

Replacement Cost claims are often paid in two stages.

The insurer may initially pay the Actual Cash Value of the damaged property. This allows the policyholder to begin the repair or replacement process.

Once the work is completed and receipts or invoices are provided, the insurer may pay the remaining eligible amount. This second payment is sometimes referred to as recoverable depreciation.

Policies may require the property to be repaired or replaced:

  • Within a specified or reasonable period
  • At the same location
  • For the same use or occupancy
  • With property of similar kind and quality
  • With proof that the cost was actually incurred

When the policyholder chooses not to repair or replace the property, the settlement may remain limited to Actual Cash Value.

This means Replacement Cost is not always available as an unrestricted cash payment.

What Is a Cash Settlement?

A policyholder may occasionally prefer to receive money rather than have the insurer arrange or approve repairs.

However, a cash settlement may not equal the full amount shown on a replacement estimate.

The cash settlement could be based on:

  • Actual Cash Value
  • The insurer’s approved repair estimate
  • The lowest reasonable contractor estimate
  • The amount the insurer would have paid its restoration contractor
  • The policy limit
  • The settlement terms in the policy

Mortgage lenders may also be included on payments involving damage to a mortgaged building. Depending on the circumstances, funds may be released as repairs progress or after invoices are provided. The Government of Canada notes that claim payments involving mortgaged homes may be issued to the homeowner or mortgage lender, depending on the policy and arrangements. What Is Guaranteed Replacement Cost?

Guaranteed Replacement Cost, commonly called GRC, generally applies to the insured dwelling.

It does not normally apply automatically to personal belongings, detached buildings or every coverage section of the policy.

GRC may allow an insured home to be rebuilt after a covered loss even when the rebuilding cost exceeds the dwelling limit shown on the policy.

For example, a home may be insured for $600,000. Following a major regional disaster, labour and material shortages could increase the actual rebuilding cost to $700,000.

When the policy includes GRC and all applicable conditions have been satisfied, the additional rebuilding cost may be covered even though it exceeds the stated dwelling limit. Wawanesa’s Canadian claim guidance explains that its Guaranteed Replacement Cost coverage can pay the full replacement cost when the insured proceeds with repair or replacement, subject to the actual policy. does not usually mean the policyholder receives an unlimited cash payment.

Conditions may include:

  • The home being insured using an accepted replacement-cost valuation
  • Accurate information being provided about the home
  • Renovations and additions being reported
  • Required inflation adjustments being accepted
  • The home being rebuilt at the same location
  • The replacement having a similar size, use and occupancy
  • Reconstruction beginning within the required period
  • Compliance with all other policy requirements

If the policyholder chooses not to rebuild, builds somewhere else or constructs a substantially different home, the settlement may be limited to the policy limit, Actual Cash Value or another amount established by the wording.

Replacement Cost and Guaranteed Replacement Cost Are Different

Although the terms sound similar, they serve different purposes.

Replacement Cost determines whether depreciation will be deducted when eligible property is repaired or replaced.

Guaranteed Replacement Cost may allow the cost of rebuilding the insured dwelling to exceed the dwelling limit.

A policy can provide Replacement Cost coverage without providing Guaranteed Replacement Cost.

What Is Co-Insurance?

A co-insurance clause requires the property to be insured to a specified percentage of its value.

Co-insurance is especially common in commercial, agricultural and certain property policies. It may also appear in other forms of insurance.

Common co-insurance requirements include 80%, 90% or 100%, depending on the policy.

For example:

  • Replacement cost of the building: $1,000,000
  • Co-insurance requirement: 80%
  • Minimum amount that should be insured: $800,000
  • Actual amount insured: $600,000
  • Covered partial loss: $200,000

The building was insured for only 75% of the required amount:

$600,000 ÷ $800,000 = 75%

The insurer could therefore pay 75% of the covered loss:

$200,000 × 75% = $150,000

The deductible would then generally be subtracted.

The remaining cost would be the policyholder’s responsibility, even though the $600,000 policy limit was greater than the $200,000 loss.

Co-insurance effectively makes the property owner responsible for a portion of a partial loss when the property has not been insured to the required value. Intact defines co-insurance as an arrangement requiring the insured to carry a specified percentage of the property’s total value, with a proportional claim consequence when that requirement is not met. Why Accurate Valuations Matter

The amount required to rebuild a building is not necessarily the same as:

  • Its market value
  • Its municipal tax assessment
  • The purchase price
  • The amount remaining on the mortgage
  • The amount the owner believes the property could be sold for

Replacement-cost calculations consider construction materials, labour, demolition, debris removal, building accessibility, contractor costs and the property’s design and features.

Renovations and additions should be reported so the rebuilding valuation and policy limits remain accurate.

The Deductible and Policy Limits Still Apply

Regardless of the settlement method, the claim remains subject to the policy’s:

  • Deductible
  • Coverage limits
  • Special limits
  • Exclusions
  • Conditions
  • Coverage extensions
  • Settlement provisions

Replacement Cost does not override a special limit for jewellery, bicycles, tools, collectibles, business property or other restricted categories.

Guaranteed Replacement Cost does not necessarily increase every limit in the policy.

Co-insurance can reduce a partial-loss settlement when the insured value does not meet the required percentage.

Ask Before a Claim Happens

Consider asking your insurance broker:

  • Is my building insured for Actual Cash Value or Replacement Cost?
  • Do I have Guaranteed Replacement Cost?
  • Could my claim be repaired rather than fully replaced?
  • Does my policy include matching coverage?
  • Are any parts of my home subject to depreciation schedules?
  • Would a cash settlement be different from the repair cost?
  • Does my policy contain a co-insurance clause?
  • Is the current rebuilding valuation accurate?
  • Have my renovations and additions been included?
  • Are any belongings subject to special limits?

Every policy is different. The declarations, policy wording and endorsements ultimately determine how a covered claim will be settled.

Starting a New Build? Get Construction Insurance Before Breaking Ground

Why Construction Insurance Should Be Arranged Before Building Begins

Building a new home, shop, garage, cabin, or major addition is an exciting project. Between securing permits, hiring contractors, and ordering materials, insurance is often one of the last things on a homeowner’s mind.

Unfortunately, waiting until construction is already underway can create significant challenges when trying to obtain insurance coverage.

Insurance Companies Want to Review Projects Before Construction Starts

Over the past several years, many insurance companies have tightened their underwriting requirements for homes and buildings under construction.

Today, many insurers require construction insurance to be arranged before work begins. In some cases, once a foundation has been poured or framing has started, standard insurance companies may decline the risk altogether.

The reason is simple: insurers want the opportunity to evaluate the project before construction begins.

This review often includes:

  • Who is acting as the general contractor
  • The experience and reputation of the builder
  • Whether licensed electricians and plumbers are being used
  • The scope and value of the project
  • Construction timelines
  • Overall project management and risk controls

Insurance companies know that projects managed by experienced and reputable contractors tend to experience fewer claims, fewer construction defects, and fewer costly delays. By reviewing these details upfront, they can better assess the risk and provide appropriate coverage.

Why Starting Before Arranging Insurance Can Create Problems

Once construction is already underway, insurers lose the ability to assess the project from day one.

At that point, they may have questions such as:

  • Who completed the work that has already been done?
  • Were proper inspections completed?
  • Were licensed trades used throughout the project?
  • Has any damage already occurred?
  • Has the project been managed according to industry standards?

Even when nothing is wrong, these unanswered questions create additional uncertainty for the insurer.

As a result, many standard insurance companies simply won’t accept projects that have already started.

Specialty Insurance Often Means Higher Costs

When traditional insurance markets decline a partially completed project, homeowners are often forced to seek coverage through specialty insurance providers.

While these insurers can often help, the coverage typically comes with:

  • Higher premiums
  • Larger deductibles
  • Additional underwriting requirements
  • More restrictive coverage terms

What could have been a straightforward builders risk policy arranged before construction began can quickly become much more expensive.

What Is Builders Risk Insurance?

Builders Risk (also known as Course of Construction insurance) is designed to protect a project while it is being built.

Coverage may include protection against:

  • Fire
  • Wind and hail
  • Theft of building materials
  • Vandalism
  • Certain types of water damage
  • Damage to materials stored on-site

The policy protects the value of the project as construction progresses and can be one of the most important pieces of risk management during a build.

The Best Time to Call Your Broker

The best time to discuss insurance is before any work begins.

Whether you’re building a new home, a detached garage, a shop, a cabin, or a major addition, arranging coverage before construction starts gives you access to the widest range of insurance options and the most competitive pricing.

A quick conversation before the first shovel enters the ground can save considerable time, money, and frustration later.

Planning Ahead Protects Your Investment

Construction projects represent a significant investment of time and money.

Before the excavation equipment arrives, before the foundation is poured, and before the framing begins, make sure insurance is part of your planning process.

Getting coverage in place early allows insurers to properly evaluate the project, helps ensure you qualify for standard market rates, and provides peace of mind from the very beginning of the build.

If you’re planning a construction project this year, contact our team before construction begins. We’ll help ensure the proper coverage is in place from day one.

, and greater peace of mind throughout the project.

If you’re planning a construction project this year, reach out to our team before construction begins. We’ll help make sure the proper coverage is in place from day one.

Why Winter Tires Matter More Than You Think

When winter hits in Saskatchewan, driving conditions can change fast. Snow packed roads, icy intersections, and sudden temperature drops are just part of everyday life. While many drivers rely on all season tires year round, winter tires are designed specifically for these conditions, and the difference they make is bigger than most people realize.

Here are three important facts about winter tires, and why they play such a critical role in winter driving safety.

      1. Winter Tires Help You Stop Faster

        One of the biggest safety benefits of winter tires is reduced stopping distance. On snow and ice, winter tires can shorten stopping distances by up to 30 percent compared to all season tires. That difference matters. In winter conditions, a few extra feet can be the difference between a close call and a collision. Winter tires are designed to grip snow covered and icy roads more effectively, giving you more control when braking, turning, or reacting to sudden changes in traffic.

      2. It Is Not Just the Tread. It Is the Rubber

        Many people assume winter tires are just all season tires with deeper tread. In reality, the rubber compound is what sets them apart. Winter tires are made from a softer rubber that stays flexible in cold temperatures. All season tires begin to harden as temperatures drop, which reduces traction, even if the road looks dry. Winter tires stay pliable, allowing them to grip the road surface more effectively in cold weather. This flexibility improves traction during acceleration, braking, and cornering, helping your vehicle respond more predictably in winter conditions.

      3. Winter Tires Perform Best Below 7 Degrees Celsius

        A common misconception is that winter tires are only useful when there is snow on the ground. In fact, winter tires outperform all season tires whenever temperatures fall below 7 degrees Celsius, even on dry pavement. Cold temperatures alone affect how tires perform. Once the temperature drops, winter tires provide better grip and stability, making them a smart choice well before the first major snowfall and well into early spring.

Winter Tires and Peace of Mind

Insurance is there to help after something goes wrong. Winter tires help reduce the chances of something going wrong in the first place. By improving traction, shortening stopping distances, and enhancing overall control, winter tires help protect you, your passengers, and everyone else on the road. They also reduce the likelihood of winter related claims and costly repairs, making them a smart investment for both safety and peace of mind.

Final Thought

You cannot control winter weather, but you can control how prepared your vehicle is for it. Winter tires are not just an upgrade. They are one of the most effective ways to drive more confidently and safely through the winter months. If you have questions about winter driving, coverage, or how to stay protected all season long, your insurance advisor is always a great place to start.