Emond v Trillium Mutual Insurance Co: When “Guaranteed” Coverage Isn’t Guaranteed
In Emond v. Trillium Mutual Insurance Co., the Supreme Court of Canada considered the interaction between a guaranteed replacement cost endorsement and a compliance cost exclusion in a standard form insurance policy. The case required the SCC to determine whether insurers must cover the full cost of rebuilding in accordance with existing legal requirements, or whether such costs can be excluded despite language suggesting “guaranteed” coverage. In resolving this issue, the SCC clarified the proper approach to interpreting insurance endorsements, the scope of compliance cost exclusions, and the role of the nullification of coverage doctrine.

