Quebec Brokerage Qubit Insurance Announces Ne...

38% of new Quebec home insurance clients are underinsured by an average of 16%.

What the company is saying

Qubit Insurance is highlighting a significant risk for Quebec homeowners: rising construction costs have left 38% of 1,200 newly reviewed client policies underinsured by an average of 16%. The company frames this as a widespread, largely invisible problem that only becomes apparent when a claim is made. They use a concrete example, stating that a homeowner insured at 70% of rebuild value could see a claim reduced by nearly 30%. The announcement attributes the rise in underinsurance to an 18% cumulative increase in construction costs since 2023, driven by inflation in materials and skilled labor, as estimated by the APCHQ. Qubit Insurance positions itself as a solution provider, recommending regular re-evaluations of coverage and active policy management. The tone is factual and advisory, with Manjot Singh, an insurance broker at Qubit, quoted to reinforce the urgency and prevalence of the issue.

What the data suggests

The review of 1,200 new client policies found that 38% were underinsured relative to current rebuilding costs, with an average shortfall of 16%. Construction costs in Quebec have increased by approximately 18% since 2023, according to APCHQ. The company explains that underinsurance can trigger co-insurance clauses, reducing claim payouts even for partial losses. For example, insuring at 70% of rebuild value could result in a claim payout cut by nearly 30%. The data is specific to Qubit's new clients and does not represent the entire Quebec homeowner population. No company-level financials, revenue, or operational metrics are disclosed. The figures are clear and directly support the company's warning about underinsurance risk, but do not provide insight into Qubit's own business performance or market share.

Analysis

The announcement is a factual risk update from Qubit Insurance, summarising findings from a review of 1,200 new client policies and providing recommendations for Quebec homeowners. The tone is measured and does not overstate the significance of the findings; numerical data is presented clearly (38% underinsured, 16% average underinsurance, 18% construction cost increase). While some claims are forward-looking (recommendations for homeowners), these are advisory in nature and not promotional or aspirational about the company's own prospects. There are no exaggerated claims about Qubit Insurance's market position, growth, or financial performance, nor is there any discussion of capital outlay or future earnings. The gap between narrative and evidence is minimal, as the main claims are supported by the disclosed data. No hype indicators are present.

Risk flags

• ●A large proportion of new clients—38%—are underinsured, exposing them to potentially significant claim reductions if a loss occurs. This risk is heightened by the 18% rise in construction costs since 2023, which may have outpaced policy updates.
• ●The prevalence of co-insurance clauses means that even partial losses could result in reduced payouts, with the example given showing up to a 30% reduction for those insured at 70% of rebuild value. Many homeowners may be unaware of this exposure until a claim is made.
• ●The data is limited to Qubit's 1,200 new client policies and may not reflect the broader market, so the true scale of underinsurance across Quebec is uncertain. This limits the generalizability of the findings and may affect the perceived urgency for investors or policymakers.

Bottom line

Qubit Insurance's review signals that underinsurance is a widespread and growing issue for Quebec homeowners, with 38% of new clients underinsured by an average of 16% due to an 18% jump in construction costs since 2023. The company's advisory is credible, backed by specific data and a clear causal link to inflation in materials and labor. For investors, this is not a direct financial update on Qubit's own performance, but it does highlight a market risk that could drive demand for insurance reviews and policy adjustments. The most actionable takeaway is the immediate exposure many homeowners face to reduced claim payouts, especially where co-insurance clauses apply. Further transparency on Qubit's own financials or market impact would be required for a more substantive investment case. For now, the announcement is a factual risk alert rather than a catalyst for the company's shares.

Announcement summary

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%. 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. Qubit Insurance warns that this discrepancy can trigger a co-insurance clause built into many home insurance policies, potentially reducing claim payouts even on partial losses. 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. Qubit Insurance recommends that Quebec homeowners have their home's reconstruction cost re-evaluated at least every two years or after any major renovations, review their dwelling coverage limit at every renewal, confirm with their insurer or broker whether their policy applies a co-insurance clause and at what percentage, and work with a broker who can compare reconstruction-cost estimates and coverage terms across multiple carriers.

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