Thinking about renovating?

What you should know about your home insurance

Notify your insurance agent about renovations

It’s a good idea to let your insurance agent know of any changes to insured property. Home insurance is designed to cover the building and its contents from unexpected loss. But when it comes to construction there is a greater risk of loss. If you’ve made home improvements, or are about to, bring your agent up-to-date right away. You’ll want to ensure the current value of your house is reflected in your policy. Not informing your agent puts you at risk that your coverage may not be there when you need it most.

How does renovation affect your home insurance?

For example, let’s say you’ve recently spent $50,000 renovating your home plus another $20,000 in furnishings. Your building and personal property values have gone up substantially, but has your insurance coverage been adjusted to reflect this? If you lost everything in a fire but hadn’t informed your agent of the improvements to your home, your renovations would not be covered.

Do you work from home?

Does your renovation include a home office? Today, more and more people are working from their homes by converting a room, basement, or garage into a home-based business. A home-based business may require specialized insurance that ensures your home office is properly covered and that you have liability coverage should a client or a supplier be injured while visiting.

Does your contractor have insurance?

Before starting any renovations, there are some important questions to ask yourself and your agent. What happens during construction if building materials are stolen from the premises or someone is injured? Who’s responsible? You? The contractor? Or both? Is your contractor willing to provide you with proof of adequate liability insurance?

Ask about a building construction endorsement

Generally when major renovations are being done your insurance coverage excludes theft, water escape and rupture, vandalism, malicious acts, and glass breakage. While renovations are being done, will you be living on the premises, or will you need coverage for a temporary residence? Is your furniture covered if it’s damaged in the renovation or while it’s in storage? Call your agent and discuss your plans beforehand. Your agent may be able to add a building construction endorsement to your policy to cover excluded items and building materials. If necessary, coverage can also be arranged for your temporary residence and stored furniture. A few dollars extra premium can save you tens of thousands of dollars should you ever need to make a claim.

Get the value of your newly-renovated home re-assessed

Upon completion of your home improvement project it’s a good idea to have your agent re-evaluate your home to ensure that the replacement value is correctly and officially documented. One quick call for an assessment for your home and its contents could make all the difference when it comes to properly insuring your home.

About The Co-operators | Serving Canadians for over 60 years, The Co-operators is the leading Canadian-owned multi-product insurance company,

protecting more than one million Canadians in over 600 communities across the country. For more information, please visit cooperators.ca.

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