Replacement cost and premium band estimator
What it costs to rebuild your building, what a policy on it should cost, and the exact coverage a lender will demand before funding. No account, no email.
01The answer
What should commercial property insurance cost?
Between roughly $0.30 and $1.20 per $100 of insured value a year for most Canadian commercial buildings, before peril loadings. The spread inside that range is set by construction class, protection class, sprinklers and claims history — not by square footage, which only scales the result.
02The tool
Replacement cost + premium band estimator
Every figure below is computed in your browser from the published formulas. Nothing is sent anywhere, and the premium band is indicative — it is not a quote.
Insurable replacement cost
$7,925,299
$198 per sf
Indicative annual premium
$8,745–$13,679
Mid $11,212 · indicative, not a quote
Rate per $100 of insured value
0.130
0.101–0.158 band
Premium per sf
$0.28
Add NOI for the % of NOI line
Verdict
This risk prices in the ordinary range for its class — the binder, not the premium, is what will hold up your funding.
How this rate was built
- Construction — Masonry non-combustible (ISO 4)x0.63Masonry or tilt-up concrete exterior walls with a non-combustible roof deck. The most common Canadian industrial and flex build of the last thirty years.
- Protection — Protectedx0.88Hydrant within 300 m and a full-time fire hall within 8 km. Every tier 1 and tier 2 urban core in this dataset.
- Sprinkleredx0.62A monitored NFPA 13 system is the largest single credit on a commercial property rate.
- Age — 25 yearsx1.12Loads for electrical, roof and plumbing vintage.
- Loss history — 0 claims / 5 yearsx0.95Frequency moves a rate faster than severity does.
- Deductible — $10,000x0.93Retaining more of the small losses buys rate on the whole schedule.
- Market factor — Torontox1.06Curated from broker input for this market, named and dated on the methodology page.
Your artifact — the insurance scope sheet
A broker submission written from your inputs: values, the coverage a lender will require, the perils mapped in Toronto, and the questions worth asking. Send it as is.
COMMERCIAL PROPERTY INSURANCE — SCOPE SHEET
Toronto, ON · Industrial / warehouse
Prepared 2026-08-23 using Insurelor (insurelor.org)
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1. THE RISK
Gross floor area 40,000 sf
Storeys 1
Year of construction approx. 2001 (25 years old)
Construction class Masonry non-combustible (ISO 4)
Occupancy Industrial / warehouse
Protection Protected
Sprinklered Yes
Claims, last 5 years 0
2. VALUES TO BE INSURED
Insurable replacement cost $7,925,299
Per sf $198
Business interruption limit $713,277 (12-month indemnity period)
Total insured value $8,638,576
Deductible sought $10,000
3. INDICATIVE PREMIUM — FOR BUDGET ONLY, NOT A QUOTE
Annual premium band $8,745 to $13,679
Mid $11,212
Rate per $100 of value 0.130
Basis: curated broker input for this market, plus published construction cost indices.
4. COVERAGE THE LENDER WILL REQUIRE
[ ] All-risk property coverage on the building (stops funding if missing)
Wording: "All risks of direct physical loss or damage" on the building, not "named perils" or "broad form".
[ ] Replacement cost basis, not actual cash value (stops funding if missing)
Wording: "Replacement cost, no deduction for depreciation" with a stated-amount or waived coinsurance endorsement.
[ ] Limit at or above 90% of insurable replacement cost (stops funding if missing)
Wording: Building limit shown on the certificate, tested against a current replacement cost estimate.
[ ] Business interruption or rental income coverage (stops funding if missing)
Wording: "Rental income" or "gross earnings" with a stated period of indemnity, normally 12 to 24 months, and an extended period of indemnity endorsement.
[ ] Lender named as first loss payee and mortgagee (stops funding if missing)
Wording: Exact registered lender name and address under "Loss Payee" and "Mortgagee", with a standard mortgage clause (IBC 3000 in Canada).
[ ] Commercial general liability, lender as additional insured
Wording: $5,000,000 per occurrence is the common commercial minimum; $2,000,000 appears on smaller single-tenant deals.
[ ] Flood and earthquake where the location is exposed
Wording: Named sub-limit and the percentage deductible, both stated. A deductible expressed as a percentage of values is not the same as a dollar deductible.
[ ] Waiver of subrogation in the lender's favour
Wording: "Waiver of subrogation in favour of [lender]" endorsed onto the property and liability sections.
[ ] Notice of cancellation, 30 days
Wording: "30 days' written notice of cancellation or material change to the mortgagee."
[ ] Binder before funding, certificate before or at close (stops funding if missing)
Wording: Order the binder the day the commitment is signed, and send the lender's exact registered name to the broker in writing.
[ ] IBC 3000 standard mortgage clause, endorsed to the property section
5. MAPPED PERILS IN ON
Overland flood — moderate exposure
Urban sewer-backup and overland flood dominate Ontario property losses; conservation authority mapping is the practical underwriting reference.
Source: Natural Resources Canada, Federal Flood Mapping Framework
Hail and wind — moderate exposure
Southwestern Ontario carries meaningful summer convective exposure.
Source: Environment and Climate Change Canada, severe weather climatology
6. QUESTIONS FOR THE BROKER
1. Is the limit written on a stated-amount basis, or is 90% coinsurance in force?
2. What is the deductible for each mapped peril above, separately from the all-risk deductible?
3. Is business interruption written on gross rentals or gross profit, and what triggers it?
4. Does the certificate name the lender under the standard mortgage clause, not merely as a loss payee?
5. What would the rate be with a sprinkler retrofit, and with the next deductible up?
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Indicative figures produced from published formulas and curated broker input.
They are not an offer of insurance, a quote, or a binder. Coverage is bound only by an insurer.
Formulas: https://insurelor.org/methodology$2,500 deductible
$12,739
Base retention.
$5,000 deductible
$11,374
Base retention.
$10,000 deductible
$10,578
Saves $796 a year. Break-even at 1.6 losses per decade.
$25,000 deductible
$9,668
Saves $1,706 a year. Break-even at 0.9 losses per decade.
$50,000 deductible
$8,871
Saves $2,502 a year. Break-even at 0.6 losses per decade.
$100,000 deductible
$8,189
Saves $3,185 a year. Break-even at 0.3 losses per decade.
03Carry these numbers
Take this to the rest of the network
Insurelor produces the premium and the replacement cost. Sister sites use both without you re-entering anything.
04Questions
Common questions
Is the premium band a quote?
No. It is an indicative band built from published construction cost indices and curated broker input. Only an insurer can quote, and only a binder provides coverage.
Why does the estimator ask for construction class?
Because it is the largest single driver of both rebuild cost and rate. A frame building and a fire-resistive building of identical size are different risks and different prices.
What is coinsurance and why does the tool warn me?
Most Canadian commercial property policies require the limit to sit at or above 90% of replacement cost. Below that, every claim — including partial losses — settles at the ratio of carried to required. The tool checks your stated limit against the requirement.
Do you store my inputs?
No. Everything is computed in your browser and carried in the URL. There is no account, no email gate, and no figure leaves the page.
Sources
- [1] ISO construction class definitions and occupancy factors — Curated by the Insurelor data desk from standard commercial property rating practice.
- [2] Regional construction cost indices — Derived from published Canadian construction cost reporting, indexed to a national reference of 1.00.
- [3] Insurelor broker panel (commercial property, Q3 2026) — Indicative rate bands for curated markets. Named and dated.