Planning a home renovation is exciting. Whether you’re upgrading your kitchen, finishing your basement, or adding a backyard oasis, improvements can increase your home’s comfort — and its value.
But before the dust starts flying, it’s important to connect with your insurance professional.
Why Your Insurance Needs a Renovation Check-Up
Home improvements often increase your property's replacement value. If your policy hasn’t been updated, you could face a coverage gap in the event of a claim.
At the same time, certain upgrades may actually qualify you for savings. Improvements such as a new roof, updated plumbing, or modern electrical systems can reduce risk and potentially lower your premium.
Here are a few key insurance considerations before you begin:
1. Increased Home Value: Major upgrades like kitchen remodels, bathroom renovations, additions, or finishing a basement can significantly increase your home’s replacement cost. Your policy limits should reflect that new value.
2. Liability During Construction: Renovation projects come with added risk. If someone is injured on your property during construction — whether it’s a contractor, friend, or family member — you’ll want to be confident your liability coverage is adequate.
If you’re taking the DIY route or accepting help from friends, reviewing your liability limits is especially important.
3. Vacant Home Concerns: If your renovations require you to temporarily move out, your home could be considered vacant. Vacant homes carry a higher risk and may not be covered under a standard policy without proper notification and adjustments.
4. Builder’s Risk Coverage (also known as Course of Construction Insurance): For larger projects, you or your contractor may want to consider a Builder’s Risk Policy. This coverage can help protect against theft, vandalism, or damage to building materials during construction.
5. Confirm Contractor Insurance: Always verify that contractors working on your home carry proper liability and WSIB (where applicable). Keep copies of contracts, warranties, and guarantees in a safe place.
6. Complete a Home Inventory: Before renovations begin, take photos or videos of your home and contents. A current home inventory can make the claims process much smoother in the event of theft or damage.
Renovations That May Affect Your Insurance Premium
Certain upgrades commonly impact your coverage and premiums, including:
- Home additions
- New roof installation
- Pool or outdoor living areas
- Adding a home office or operating a home-based business
- Kitchen or bathroom upgrades
- New appliances or higher-value contents
- Plumbing, electrical, heating or cooling updates
- Basement finishing or waterproofing
- Adding or removing a woodstove or fireplace
Every renovation is different, and the insurance implications can vary depending on the scope of work.
Renovate with Confidence
Home renovations can be stressful, but worrying about insurance shouldn’t be part of the process. Keeping your property, contents, and liability coverage up to date helps protect you from unexpected financial setbacks.
Before your project begins, have a conversation with your insurance professional to ensure everything is aligned with your plans.
If you’re preparing for a renovation project and would like guidance, contact Gibb Insurance Brokers at 519-736-8228.