Insurance Loss Quantification in Canada – Protect Your Biggest Asset

Insurers only pay what’s proven—and in Canada it’s your duty to prove the amount of loss. Our experts deliver independent, defensible valuations so you don’t leave money on the table.

Why policyholders need help
Why policyholders need help

Why Policyholders Need Loss Quantification

Most policyholders believe their insurer will fairly calculate the value of their loss. Unfortunately, under Canadian insurance law, the burden of proof rests on the insured — not the insurer. You must prove both the scope and the amount of loss with credible evidence.

Without expert support, insurers often:

  • Limit scope using exclusions or “like kind and quality” arguments.
  • Overstate depreciation, lowering your Actual Cash Value (ACV).
  • Reject contractor estimates that aren’t standardized or clearly supported.

A Loss Quantification Report protects you by establishing a clear, defensible value of your claim. It connects the scope of work to the true amount of loss, giving you the documentation you need to stand up to insurer challenges during negotiation, appraisal, or legal review.

In Canada, Actual Cash Value (ACV) = Replacement Cost – depreciation of materials only. Labour and overhead cannot be depreciated.

Our Proven Loss Quantification Process

1

Claim Review

  • Confirm policy type, coverage, and any exclusions involved
  • Clarify damages, project needs, and overall client objectives

2

Forensic Site Inspection

  • Document physical conditions, visible damage, and related issues
  • Identify causation concerns and applicable building code impacts

3

Scope & Damage Definition

  • Outline full repair scope needed to return the property to pre-loss
  • Itemize materials, labour requirements, and required repair methods

4

Standardized Bid Package

  • Prepare uniform quantities and specifications for all contractors
  • Ensure all bids reflect the same clearly defined repair scope

5

RCV & ACV Assessment

  • Calculate full Replacement Cost (RCV) using verified data sources
  • Apply depreciation to materials only for accurate and fair ACV

6

Appraisal & Legal Support

  • Provide defensible documentation for valuation or dispute matters
  • Support your appraiser or legal team when disagreements arise

Why Choose PAAC?

What’s at Stake if You Don’t Quantify Properly?

Underpayment

Insurer’s restricted scope can leave a large portion of your true loss unpaid, leading to significant shortfalls.

Inflated Depreciation

Labour and overhead are often depreciated incorrectly, reducing your ACV payout far more than what is appropriate.

Dismissed Estimates

Without a standardized bid package, insurers often dismiss higher contractor bids as inflated or unsupported.

Weaker Disputes

Without defensible evidence and proper valuation, your negotiating position or legal case weakens.

Fair and transparent
Fair and transparent

Fair, Transparent Fees – No Surprises

We keep our fee structure straightforward so you know exactly what to expect.

  • Fixed-Scope Flat Fee – best for standard residential property losses.
  • Hourly – ideal for complex commercial or multi-party claims.

Example Claim Cost Breakdown:

  • Replacement Cost (RCV): $500,000
  • ACV Depreciation (materials only): $60,000
  • ACV Payment: $440,000
  • Holdback (paid upon completion): $60,000

Important: Under Canadian law, labour and overhead are not depreciated under ACV principles — only materials may be depreciated.

Real Policyholders. Real Results.

Case Study: Insurer offer $900,000 → Final recovery $1.45M after PAAC quantified hidden costs, code upgrades, and corrected ACV (materials-only).

“PAAC’s report changed everything—clear scope, strong numbers, and a fair outcome.”

Loss Quantification – Frequently Asked Questions

What is Loss Quantification and why do I need it?

Loss Quantification calculates the true amount of loss after property damage. In Canada, the insured—not the insurer—must prove the value of the loss. A professional report ensures your claim includes the full, defendable cost to restore your property.

Under Canadian law, you are responsible for proving your loss. The insurer only reviews what you submit. Without solid evidence, settlements are often reduced or delayed.

ACV = Replacement Cost – depreciation of materials only. Labour and overhead cannot be depreciated. Independent valuation ensures your ACV is fair and compliant with Canadian law.

It provides objective, defensible evidence—scope, cost analysis, and depreciation data—that appraisers and lawyers rely on to prove the true value of your claim.

Inspection, scope development, pricing, and preparation of a standardized bid package so all contractors price the same quantified scope. Each step strengthens your evidence and ensures accuracy.

Yes. The cost is a necessary and direct claim expense, not an extra cost to the insured. It’s typically recoverable as part of your total claim submission.

A Public Adjuster manages claims on contingency; a contractor repairs damage. A Loss Quantification expert independently determines the true scope and value of the loss, ensuring your evidence stands up in appraisal or legal settings.

Take Action Before It’s Too Late

Deadlines and documentation standards can limit recovery. Get an independent valuation now. We reply within 1 business day – confidential, secure, and no obligation.