Experienced the event by them.

Montreal Couple's Insurance Woes After Triplex Collapse

In a turn of events that has left them in financial distress, Geneviève Laurendeau and Vincent Goineau are sharing their horror story with the public. Nine years ago, their triplex in Montreal collapsed, and the subsequent reconstruction process has proven to be a costly ordeal.

The couple bought and insured the triplex in 2016 for $535,000. However, the insurance contract listed a reconstruction cost of only $503,000, a figure that would soon prove inadequate.

The actual reconstruction cost was significantly higher, estimated at about $850,000. This discrepancy left the couple with an additional $350,000 out-of-pocket expense due to the total loss of their triplex and the insufficient amount on their policy.

Geneviève wonders why insurance company employees do not consider site securing and demolition costs in their calculations. The Insurance Chamber explains that insurance company employees only have a duty to advise at the time of subscription. This leaves the onus on the policyholders to understand the complexities of their coverage.

The reconstruction cost includes various elements such as demolition, cleanup, city permits, securing the site, architectural plans, engineer expertise, and municipal requirements. Push beams and firewalls were necessary in the reconstruction process, and air exchangers had to be installed in each of the three units.

Moreover, the couple had to comply with the requirements of the Rosemont-La Petite-Patrie borough, which led to changes in the size of the top unit and the relocation of the exterior staircase. The couple added a unit to facilitate the repayment of their now much higher mortgage, which increased their total bill to over $1 million.

Geneviève found the initial reconstruction cost of $500,000 too low and was surprised when shopping for her insurance policy. She believes that agents should encourage their clients to "reflect" during the insurance subscription process. The couple uses the term "trap" when discussing the reconstruction cost because it does not encompass all associated costs.

Desjardins Insurance, the company that insured the Montreal couple, demanded that the rebuilding costs be adjusted according to the actual expenses and that certain repairs comply with updated building codes.

In light of their experience, Geneviève Laurendeau and Vincent Goineau urge other homeowners to be vigilant and thoroughly understand their insurance policies to avoid similar financial hardships.