The $80,000 Mistake Hiding in a “Cheaper” Insurance Quote
You called three brokers. You gave them the same details. You got back three different numbers. The cheapest one is winking at you right now. Here’s how that trick works, so the next time someone hands you a quote (including us) you know what you’re really looking at.
Already have a quote? Send it over and we’ll compare it line by line, free.
The cheap quote usually isn’t cheaper because that broker found you a better deal. It’s cheaper because somebody, somewhere in that quote, lowered the value of the thing you’re trying to protect. You won’t notice today. You won’t notice next year. You’ll notice the morning after a fire, a flood, a break-in, or the day someone slips on your steps and sues — when the cheque arrives tens of thousands short. By then it’s too late.
Comparing insurance quotes in BC comes down to a handful of numbers most people never see: the rebuild value, the deductibles, the sub-limits, and whether sewer backup, overland water, and earthquake are in or out. On a business policy, add the liability limit and how long business interruption pays. Two quotes can read almost the same and protect you completely differently. Here’s how to read one properly.
“I’ve been doing business with Kul Shergill and his family for almost 30 years. Prime Insurance is a family run business and they have always been fair and honest. I would not hesitate to recommend them to anyone and I frequently do. Car, boat, business and house insurance are all under their service umbrella and they work hard to find us the best policy available. Call Kul or Kuljit and their team the next time you need insurance you will not be disappointed.”
We all use the same insurance companies.
Read that line again. Prime Insurance, the broker down the street, the chain office at the mall — we all write policies through the same major BC carriers: Wawanesa, Optimum, Family Insurance, Peace Hills, and others. Same companies. Same rates. Same rules.
So when a competitor’s quote lands $300, $500, or $800 below ours, the question isn’t “how did they get a better deal?” The question is: what did they leave out? There are three favourite places.
Trick #1: The lowball replacement cost
This is underinsurance — the most common shortcut in this business, and the most damaging. Your house costs $900,000 to rebuild today, with current lumber prices, current labour, current building codes, and the cost of hauling away the debris. If a broker plugs $700,000 into the quote instead, the premium drops. Looks great. Feels like a win.
It’s not. Replacement cost is the most important number on the policy. It’s not what you paid for the house, not what BC Assessment says, not your mortgage balance — it’s what it would actually cost to rebuild from scratch. If that number is wrong, everything that follows is wrong.
Trick #2: The 80% rule nobody explains
Most home and commercial property policies require you to insure to at least 80% of full replacement cost. Set that rebuild number too low and you fall below the line — and the policy can reduce what it pays at claim time. Not just on a total loss. On everyday partial losses too.
Here’s roughly how that plays out
Your kitchen catches fire. $80,000 in damage — an easy fix, you’d think. But the home was insured for $600,000 when it should have been $900,000, so you were never close to the 80% minimum.
~$67,000 paid
The policy pays around $67,000, and you write a personal cheque for the rest. That’s the gap a cheap quote leaves behind.
This is why we set replacement cost properly from the start and, where it’s available, look at guaranteed replacement cost (GRC) — so a rebuild estimate that’s a little off doesn’t quietly reduce your settlement.
Trick #3: The quietly trimmed policy
This one’s the easiest to miss. A coverage quietly removed here. A limit quietly cut there. Each one shaves a few dollars off the quote today, and costs you thousands the day you actually need the policy to do its job.
- Sewer backup cut in half
- Overland water removed
- Earthquake gone — and you live in BC
- Sub-limits on jewellery, bikes, tools, and business equipment slashed
- Deductible bumped from $1,000 to $5,000 without a conversation
- Business interruption shortened from 12 months to 3
- Liability dropped from $2 million to $1 million
Not sure whether a quote in front of you has been trimmed? The time to find a gap is before the claim — not after. Call 604-582-0557 or bring us both quotes for a free, line-by-line comparison.
7 questions that level the playing field.
Next time anyone hands you a quote — including us — ask seven questions and watch how they answer.
- What replacement cost are you using, and how did you calculate it?A straight answer names the figure and the method — a replacement-cost calculator or a builder’s estimate.
- What’s the 80% requirement here — am I above it or below it?A straight answer tells you the percentage you’re at, and which side of the line that puts you on.
- What are the sub-limits on my jewellery, my tools, my business equipment?A straight answer reads you the actual sub-limit on each category.
- What’s the deductible across water, sewer, and earthquake?A straight answer gives a figure for each one, not a single number for all three.
- Is overland water in or out? Sewer backup? Earthquake?A straight answer is a clear in-or-out for each, with the limit where it’s in.
- What’s excluded?A straight answer lists the exclusions out loud, before you sign.
- For business owners: how long does business interruption pay, and what’s my liability — $2M or $5M?A straight answer names a payout period and a liability limit in dollars.
A broker who’s quoted you honestly answers all seven without flinching. One who’s been “creative” starts reaching for “well, you don’t really need…” and “most people don’t bother with…” That’s your moment. Walk out.
Ready to put these seven questions to us? Call 604-582-0557 or bring us the other quote for a free, line-by-line comparison.
Want the local picture for your area? See our Surrey home insurance page or the full BC home insurance guide — or go straight to condo insurance, rented-dwelling (landlord) insurance, or high-value home insurance. Renewing your plates? ICBC Autoplan is the same everywhere — how it’s handled is not. Running a business? Start with commercial property and liability insurance.
Family-owned brokerage since 1994 · English, Punjabi & Hindi · real advisors answer the phone
Bring us the other quote.
Free. No obligation. No pressure. If the other quote turns out to be the right one — fair coverages, honest replacement cost, nothing quietly cut — we’ll tell you to take it. That’s not a sales pitch. That’s how this family-owned brokerage has operated since 1994.
Bring us the cheapest quote you’ve got and we’ll put it next to ours, line by line, and show you exactly where the difference is. If they cut your rebuild number, we’ll show you. If they removed your sewer backup, we’ll show you. If they left an underinsurance gap waiting to bite you, we’ll show you.
What to send us: snap a photo of the quote you received and your current declarations page if you have it, plus your renewal date and the best number to reach you. We’ll check the rebuild value, deductible, water coverage, earthquake option, liability, sub-limits, and any obvious missing endorsements — and walk you back through it line by line.
Comparing insurance quotes — straight answers.
Why isn’t the cheapest insurance quote always the best?
Because every BC broker places coverage through the same carriers, a lower price usually reflects lower coverage rather than a better deal — a reduced rebuild value, a trimmed add-on, a higher deductible, or a shorter business-interruption period. The gap rarely shows up until claim time, which is why it’s worth comparing two quotes line by line before you switch.
How do I compare two insurance quotes properly?
Put them side by side and check the parts that actually move the price: the replacement cost (rebuild value), the deductibles, the sub-limits, the liability limit, and whether sewer backup, overland water, and earthquake are in or out — plus the business-interruption period on a commercial policy. Two quotes can show a similar premium and protect you very differently, so compare the coverage line by line, not just the bottom line.
How is replacement cost calculated for home insurance in BC?
Replacement cost is what it would cost to rebuild your home today, with current labour, materials, and BC building codes. It’s not your purchase price, your mortgage balance, or your BC Assessment (a property-tax figure weighted toward land). A proper estimate accounts for square footage, finish quality, roof type, and the age of the home.
What’s the difference between market value and replacement cost?
Market value is what a buyer would pay for the property, land included. Replacement cost is only what it would cost to rebuild the structure with current labour, materials, and BC building codes — land doesn’t burn down, so it isn’t insured. In markets like Surrey, where land is a big share of the price, the two numbers can be far apart, which is why a policy should be built on replacement cost, not market value.
What is the 80% rule, and how can underinsurance affect a claim?
Most home and commercial property policies require you to insure to at least 80% of full replacement cost. If your replacement cost is set too low and you fall below that line, the policy can reduce what it pays at claim time — not only on a total loss, but on everyday partial losses too. The fix is to set replacement cost properly from the start and, where it’s available, to look at guaranteed replacement cost (GRC) so a rebuild estimate that’s slightly off doesn’t quietly reduce your settlement.
What are sub-limits on a home insurance policy?
Sub-limits are caps on specific categories of property inside your overall coverage — jewellery, bicycles, tools, business equipment, fine art, and similar. They’re easy to miss and often lower than people expect, so they’re worth checking against what you actually own.
Is sewer backup automatically included in BC home insurance?
No. Sewer backup is a separate add-on you have to request, and its limits and deductibles vary by carrier. Overland water — surface water from rain, snowmelt, or an overflowing watercourse — is a different add-on again, and its availability varies by postal code.
Do I need earthquake coverage in BC?
Earthquake is optional in BC and worth serious thought anywhere in the southwest, including Surrey, the Lower Mainland, and Vancouver Island. It’s excluded from every standard policy and added as optional coverage — usually as an endorsement — with a percentage-based deductible, typically 10% to 20% of your insured value rather than a flat dollar amount. A buy-down endorsement can lower the percentage where it’s available.
How does business interruption coverage work, and how long does it pay?
Business interruption coverage replaces lost income while your business is closed after an insured event. The payout period varies — 6, 12, 18, or 24 months are common — and the limit needs to be enough to cover your ongoing expenses plus net profit through the recovery period, not just a few weeks of it.
30 years. Same family. Same brokerage.
We’ve quoted Surrey families since 1994 — same location, same family. Some of our earliest clients now have their kids with us, and a few have their grandkids with us too.
You don’t keep three generations of a family by quoting low and hoping they never have a claim. You keep them by setting the policy right the first time, explaining what’s in it, and being on the other end of the phone when something goes wrong. That’s the entire job.
Bring the other quote. We’ll handle the rest.
One phone call is all this costs you. Bring the cheapest quote you’ve got, bring the seven questions, bring whatever you’ve got. We’ll read it line by line, show you exactly where the difference is, and give you an honest answer either way. No obligation.
Prime Insurance 150-8888 152A St, Surrey, BC V3R 0V7 — FleetwoodMon–Fri 8:30am–9:00pm · Sat 8:30am–6:30pm · Sun & Stat Holidays 10:00am–5:30pm
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P.S. The line-by-line comparison is free, and there’s no obligation. If your current quote is the right one, that’s exactly what we’ll tell you — and you’ll walk out knowing it’s right, not just cheap.