B.C. Court Requires Strict Compliance With Replacement Cost Endorsement

A recent decision of the B.C. Supreme Court determined that despite an insurer's wrongful denial of coverage, an insured's failure to replace fire damaged buildings and contents with due diligence and dispatch restricted the insured's recovery to actual cash value ("ACV").

In Bahniwal v. The Mutual Fire Insurance Company of British Columbia 2016 BCSC 422 the Plaintiff was the owner of a property on which several structures were located.  These included a residential house, commercial greenhouses and a storage facility with attached living suite.  The house and attached suite were rented.  The Plaintiff and her husband operated a garden supply business on the remainder of the property.  A fire completely destroyed two of the structures and their contents.  While attending the fire, members of the fire department observed some signs of a marijuana grow operation in the rental suite (plastic sheeting on the walls, venting and grow lights), although marijuana plants were