Quebec Brokerage Qubit Insurance Announces New Data on Coverage Shortfalls as Rebuilding Costs Rise

MONTREAL, Sept. 12, 2026 (GLOBE NEWSWIRE) --

Qubit Insurance, an independent, AMF-licensed brokerage serving clients across Quebec, has revealed that a significant portion of Quebec homeowners may be underinsured due to rising construction costs. In a recent review of 1,200 new client policies, the brokerage found that 38% were underinsured relative to current rebuilding costs by an average of 16%.

According to Qubit Insurance, this discrepancy can trigger a co-insurance clause built into many home insurance policies, potentially reducing claim payouts even on partial losses. Many homeowners assume their insurance will cover the full cost of rebuilding after a loss, such as a fire or flood. However, if a home is insured for less than its true rebuild cost, an insurer may only pay out a percentage of a claim that matches the percentage of coverage carried. For example, a homeowner insured at 70% of their home's actual rebuild value could see a routine claim reduced by nearly 30%, regardless of the damage's actual repair cost.

The problem has grown more common as rebuilding costs have climbed. The Association des professionnels de la construction et de l'habitation du Québec (APCHQ) estimates that construction costs have risen by roughly 18% cumulatively since 2023, driven by inflation in materials and skilled labor. A policy that accurately reflected a home's rebuild cost three years ago may now be underinsuring that home by a significant margin.