Not sure what happens to your insurance during a reno?
Do you know what’s really the most Important thing you can do before starting a renovation? - Is protecting your largest asset.
Did you know renovating your home can have major affect on your homeowner's insurance? Even DIY projects.
Whether it’s a major project, such as finishing a basement, or upgrade your furnace. It’s important to understand your insurance protection before you get started.
Keep in mind that it’s always in your best interest to notify your insurance broker before you start to ensure that in the event of a claim you’re completely protected.
This could be as simple as making sure you have liability insurance in case one of your contractors suffers an injury on your property.
This is an opportunity to get clarity on what is and isn't covered during your renovation. Your coverage should reflect your needs from the start, during and after your renovation is complete.
Before Calling Review Your Policy
Reviewing your policy details first before notify your insurance broker. Make a list of all the thing you will need clarity on.
Most policy have many limitations when it comes to renovations.
A little pre-reno strategic planning on your part now can save you a major headache should anything unforeseeable arise.
Changes to your Home can ultimately affect the overall value
Renovations could also change the replacement cost of your home and add some elements of increased risk like a swimming pool or a gas stove.
This doesn’t necessarily mean your home is going to end up increasing your home insurance premiums. While that’s not unheard of, things could easily go the other way. Some home improvements can actually lower your rates and help reduce premiums.
Your home may be considered “unoccupied” when renovating
Your occupancy status can have an impact on your coverage while a Renovation is in progress.
In Ontario and throughout Canada, the 30-day home insurance rule refers to when a home is empty and left unattended for a period longer than 30 days, and your existing home insurance might be voided.
We recommend notify your insurance broker to ensure your policy reflects your needs if you’re away for an extended period of time.
Use a trusted contractor.
Having people working in your home can come with its own set of liabilities.
Do your research to make sure you have a reliable contractor that comes with references, qualifications and proof of insurance so you’re not held responsible if there’s an injury on-site.
Speak with your insurance broker about faulty material, workmanship and design. Most Insurance do not cover this, so doing your research ahead of time can save a lot of frustration down the line.
Prep that permit.
Even if your hiring a general contractor or leaving the upgrades to someone else, it’s still considered your responsibility to have the necessary permits in place.
A contractor can do this for you, but you should have this expectation included in the contract details so it is clear that it is their responsibility.
Know that do-it-yourself projects can have as much of an impact on your insurance as work done by contractors.
So be sure to follow the above steps whether you’re bringing in a team to upgrade a kitchen or just doing some DIY rewiring to your basement.
Renovating your home can benefit your insurance
Repairing potentially hazardous areas is a great way to reduce your risk for liability if someone were to injure themselves on your property.
For example, repairs and general maintenance that make your driveway safer can help limit the chances of someone slipping or falling and taking you to court for damages or injuries.
Upgrade Older Homes to Lower Premiums
Owners of older homes often find themselves paying higher premiums because of the aging structure.
Your upgrades could help reduce those premiums. In addition, changes like a roof repair can be an excellent line of defense against common hazards that might affect your insurance.
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