Renovation and Home Insurance: What Ontario Homeowners Should Consider 

If you’re planning to embark on a journey and perform some well-needed renovations to your home, then we marvel at your stick to itiveness. Tackling a home renovation project is no small task, but doing so allows you to transform your living space and create what could very well be the home of your dreams. However, amidst the excitement, it’s essential not to overlook the impact of renovations on your home insurance. Renovations can introduce new risks and alter the value of your property, which can have implications for your insurance coverage. Whether you’re planning a small update or a major overhaul, understanding the implications for your insurance coverage will help you navigate the process smoothly and ensure you have adequate protection throughout your renovation journey. 

In this blog post, we will explore the key considerations when it comes to renovations and home insurance. For a broker that can do it all, check out CCV Insurance provides reliable home insurance in Ontario. Call them to discuss your home insurance today. 

Planning Home Renovations? Don’t Forget About Your Home Insurance 

The flurry of excitement and activity that accompanies home renovations can allow us to easily get caught up in the hubbub and overlook the importance of maintaining adequate home insurance coverage. Neglecting your insurance during this time can leave you vulnerable to risks. 

Renovations can introduce new hazards to your property. Construction activities, such as electrical work, plumbing installations, or structural modifications, can increase the risk of accidents, fire, or water damage. Without proper coverage, you could be left responsible for costly repairs or liabilities arising from accidents that occur during the renovation process. 

Also, renovations impact the value of your property. Whether you’re adding square footage, upgrading fixtures, or improving the overall aesthetics, the value of your home is likely to increase. Failing to notify your insurance provider about these changes can result in being underinsured. In the event of a claim, you may only receive compensation based on the pre-renovation value, leaving you financially exposed.  

We’ll explore the above in further depth in the sections below, and why it’s so important to keep your insurance broker in the loop when you plan on any renovations. 

Permits and Liability: Navigating Insurance Requirements for Home Renovation Projects 

Obtaining permits and considering liability are vital aspects of home renovations that should not be overlooked when it comes to home insurance. Most renovation projects require permits to ensure compliance with building codes and regulations. Failure to obtain the necessary permits can not only result in legal consequences but may also jeopardize your insurance coverage. In the event of a claim related to unpermitted work, your insurer may deny coverage, leaving you solely responsible for any damages or liabilities that arise. It is crucial to consult with your insurance provider and local authorities to determine the permits required for your renovation project, ensuring that you have the proper documentation in place to maintain comprehensive coverage. 

Liability should be something considered carefully during renovations. Any workers on your property will increase the risk of injuries or accidents, and if someone is injured during the renovation process, you could be held liable for potential legal claims and medical expenses. You may need to reassess your current liability coverage or consider acquiring builder’s risk insurance.  

Renovation-Related Risks: Ensuring Adequate Coverage for Property Damage 

Renovation projects come with inherent risks that should be considered when evaluating your home insurance coverage. One major risk is the potential for property damage during the renovation process. Accidents such as fires, water leaks, or structural damage can occur during construction, resulting in costly repairs. It’s important to review your insurance policy to ensure it covers these types of risks and provides adequate coverage for the increased value of your home during the renovation. 

Vandalism is a potential risk during renovations, as homes under construction are more susceptible to theft or damage from unauthorized individuals. Make sure your home has adequate coverage to protect against theft and vandalism and take any necessary precautions to secure your home during a period of renovation.  

Another thing to be considerate of is the risk of personal injury during the renovation period. With increased activity and possible hazards on-site, there is a much higher likelihood of accidents/injuries occurring. Ensure that your liability coverage will extend to these risks.  

Mitigating potential financial losses is possible by understanding and addressing renovation-related risks.  

Consulting Your Insurance Broker for Expert Advice While Renovating 

Your insurance broker should always be your first point of contact for anything insurance related. They will be happy to pick up the phone to discuss any ongoing matters while you are doing renovations and can answer any questions or better your understanding of your existing coverage. If changes need to be made to your policy during a period of renovations, such as the addition of a builder’s risk policy, you may get in touch with your broker to discuss updates to ensure adequate coverage. 

When undertaking home renovations, it is essential to remember the significance of maintaining proper home insurance coverage. Renovations introduce new risks, alter the value of your property, and may require permits. By ensuring that your insurance policy accounts for the specific risks and changes associated with your renovation project, you can safeguard yourself from potential financial losses. Don’t overlook the importance of reviewing your policy, obtaining necessary permits, addressing liability concerns, and communicating with your insurance provider throughout the renovation process.