As soon as the weather gets nicer, many people dive into home renovation projects. But before you do, there are some important insurance-related matters you should know about.
People often do extensive planning for their home renovation but, forget to consider insurance. We are here to explain why consulting your insurance broker is essential to a successful home renovation.
Do I need special insurance coverage during the renovation?
MOST LIKELY…
If someone other than yourself is renovating anything on your property (we recommend hiring trained and licenced professionals) it's a good idea to speak with your insurance broker to ensure your current home insurance policy covers any liabilities should anyone get injured on your property during the renovation.
Furthermore, if your property will be vacant during the renovation (meaning no one will be living there) you must notify your insurance broker as they may need to obtain a vacancy permit or builders risk from your insurance company. Neglecting to disclose such information may lead to your home insurance being voided, especially if there is a claim.
Will a home renovation increase my premium?
MOST LIKELY…
If you think about it, a home renovation will likely increase the value of your property, therefore you’ll require additional coverage.
There are many factors that influence the cost of your insurance when it comes to renovations, but increased replacement cost is a major one. If you are adding something to your home such as a pool, you’ll need to adjust your liability coverage on your home insurance policy to protect you from potential claims.
It’s important to note that good property maintenance and upkeep guarantee you comprehensive coverage.
We hope we’ve clarified the significance of insurance and home renovations for you. Don’t forget it is extremely important to notify your broker before any renovations take place, contact us today!
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