Normac's Publications

With ongoing economic shifts and evolving market conditions, it is essential to stay informed about the factors influencing construction costs and their impact on your replacement cost valuations. This annual publication provides key insights to help property owners, managers, and insurance professionals navigate the current landscape.

Construction costs have changed significantly over the past 10 years and as a result, we are witnessing a major gap in insurance. For property owners, this can lead to significant financial risk in the form of underinsurance, co-insurance penalties, and business disruption.

A qualified insurance appraisal can ensure you are protected.

As we navigate the ever-evolving landscape of the construction industry, it’s more important than ever to stay informed about the trends shaping our replacement cost valuations.

In 2023, we observed increased stability in our annual valuation fluctuations, underscoring the influence the economy and housing market have on the construction industry. While the residential sector experienced a dip in growth last year, there’s optimism that a rebound will occur; government investments in the transportation, manufacturing, and energy sectors will drive the industry forward into 2025.

Inside this eBook, you’ll find in-depth insights into the factors driving these changes.

Since 2020, construction costs in Canada have been rapidly changing. During the same period, the rate of inflation in Canada has also experienced an upward trajectory. However, the rate that construction costs are increasing far outpaces that of inflation.

It is for this reason that a professional insurance appraisal is the only reliable solution for determining the optimal coverage amount for your property insurance.

Following a tumultuous year for Canadian construction costs, 2023 will provide some reprieve for property owners with cost increases beginning to flatten. Having said that, it’s important to keep expectations in check: costs won’t be decreasing, but increases will be less severe than what we witnessed in 2022.

Download our newest publication to learn about the biggest impacts to construction costs in Canada and how they will impact appraisal values this year.

All property owners should obtain regular insurance appraisals in order to protect their biggest asset. An insurance appraisal ensures your property, whether that is your home or your business, is insured to the full replacement cost value in the event of a total loss.

Without one, owners could be left at significant risk of underinsurance or liable for losses suffered by others.