Home renovations can make your space more comfortable, functional and valuable. Along with your design, permits, contractor and budget, confidence in your insurance should be part of the planning process.
Taking a few precautions before construction begins can help protect your property during the renovation and ensure your home remains adequately insured once the work is complete.
Notify Your Insurance Provider
Small cosmetic updates may not affect your insurance, but larger projects often do. Contact your insurance provider before beginning work that involves:
- Structural changes or additions
- A finished basement
- Major kitchen or bathroom upgrades
- New plumbing, electrical or heating systems
- New roof
- A home office or rental unit
- Significant increases in your home’s replacement cost
Renovations can change the value, size, use and risk profile of your home. Updating your policy helps ensure your coverage reflects the property you will have after the work is finished, not the home you had before renovations began.
Hire Properly Insured Contractors
Before choosing a contractor, ask for proof of commercial liability insurance. Depending on the work and where you live, you may also want to confirm workers’ compensation coverage, permits, qualifications and any required trade licences.
Do not assume every contractor carries adequate insurance. Verifying their coverage before signing an agreement may help protect you if someone is injured or your property is damaged during the project.
Ask whether subcontractors are also insured and request written contracts that clearly outline the work, responsibilities, costs and expected completion dates.
Review Your Liability Coverage
Renovations can bring contractors, tradespeople, delivery drivers and other visitors onto your property. Construction materials, open trenches, temporary stairs and unfinished surfaces may also create additional hazards.
Reviewing your personal liability coverage before work begins can help you understand how your policy may respond if someone is injured or neighbouring property is accidentally damaged.
Protect Materials, Equipment and Tools
Building materials and equipment can be expensive and attractive to thieves. Lumber, appliances, fixtures, copper wiring and tools may be particularly vulnerable when left outside or in an unsecured structure.
To reduce the risk of theft or vandalism:
- Store tools and materials in a locked garage, shed or container
- Keep doors and windows secured
- Use motion-activated lighting or security cameras
- Avoid leaving valuable items visible from the street
- Consider temporary fencing for larger projects
- Ask contractors if their tools and equipment are insured for loss in the event of theft or damage
- Keep receipts and take photos of materials and fixtures as they arrive.
This documentation may be helpful if something is stolen or damaged.
Report Extended Vacancies or Absences
Major renovations sometimes require homeowners to move out temporarily. Before leaving, speak with your insurance provider about how long the property will be unoccupied and whether anyone will be checking on it.
Home insurance policies often contain specific conditions for vacant or unoccupied properties. Coverage may be restricted if the home is left unattended for an extended period without the insurer’s knowledge.
Update Your Policy After the Work Is Complete
Once renovations are finished, contact your insurance provider. Share information about additions, upgraded finishes, new systems and any other improvements that may affect the cost of rebuilding your home.
This is also a good time to update your home inventory. Take photos or videos of renovated rooms, keep receipts and store copies of contracts, permits, warranties and appraisals in a secure location.
Protect the Home You Are Improving
Renovations are an investment in your home, but they can also introduce new risks. Before starting your next project, it’s important to understand how the renovation could affect your home insurance and whether any changes should be made to your policy.