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Feb 9, 2017 | Noteworthy 

Ontario Court of Appeal Finds No Entitlement to Replacement Cost under Fire Policy

Author Michael S. Teitelbaum

In Carter v Intact Insurance Co., 2016 ONCA 917, the insureds sought indemnity for replacement cost and building code upgrades after fire damaged several buildings. At first instance, the Motion Judge found that the policy did not entitle the insureds to replacement cost because their new condominium building was not “of like kind and quality” to their old buildings. On appeal, that decision was upheld. The insureds’ decision to replace the fire-damaged buildings with a substantially larger condominium building prevented their claim for replacement cost or building by-law upgrades. 

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