Many home owners who consider registering their property as a Heritage Property have concerns about their insurance coverage and the effects of designation.  In the event of a loss due to a fire or any cause, the following provisions apply to the Municipal Heritage designation for municipally registered properties:

1.  Interior of the Structure:  Pursuant to S.14(4) of the Heritage Property Act, the municipal heritage designation only applies to the exterior appearance and does not apply in any way to the construction of the interior of your house or the materials used in construction of the interior of your house on your property such as interior layout, interior walls, partitioning or interior fixtures such as furniture, kitchen or bath fixtures or finish treatments.  Additionally, heritage designation does not apply to construction materials or construction techniques used in the construction of the exterior walls of the house on your property. 

2.  Complete or Near Complete Loss From Fire or any Cause:  A deregistration process would be initiated by the Municipality.

3.  Partial Loss From Fire or Any Cause:  If the replacement causes the exterior appearance of the building or structure to be substantially different from the original, a de-registration process would be initiated by the municipality.  Please note:  For continued heritage designation, the municipality requires only that "like" materials be used on the exterior portion being replaced, otherwise an assessment will determine if enough of the original structure has remained to warrant continued heritage designation.

Given the misunderstanding which may arise for insurance considerations, this information is being provided to clarify that a Municipal Heritage Designation itself should not increase the cost of replacement should damage occur because:  1.  The Heritage Designation applies to the exterior appearance only; and 2.  the property can be deregistered if warranted.

Accordingly, such stipulation can be included with the "replacement" rider for insurance coverage.