How is Peril Insurance premium calculated?

Your Peril Insurance premium is a percentage of the REPLACEMENT COST, which itself is an estimate at current rates of the cost to replace the building, if it was to be totally destroyed today. This estimate is usually provided in the Valuation Report done by a professional valuator from the Society’s panel of valuers. The percentage rate used to compute the premium is determined by the insurance carrier and may vary from carrier to carrier

Posted in: Mortgage FAQs