Home renovations offer more than just aesthetic upgrades—they can raise your property’s value, improve comfort, and make daily living more efficient. But as the value and structure of your home changes, so should your insurance coverage.
Whether you plan to build an addition, upgrade electrical wiring, or install new security features, notifying your insurer ensures your policy reflects those changes and keeps your investment properly protected. You might also qualify for discounts that lower your premium.
Let’s explore why informing your home insurance company before and after renovations matters.
Home improvements can increase the value of your property significantly. However, unless your home insurance company in Ontario knows about those changes, your updated home might not be adequately covered. If your current insurance policy is based on your home’s pre-renovation value, any damage or loss may result in a lower payout.
For example, if you build a new sunroom or finish your basement, your square footage increases. If a fire or flood affects these new areas and your insurer wasn’t notified, you might not receive compensation for the improvements. Updating your policy ensures that all upgrades—both structural and cosmetic—are fully protected.
Renovation projects often involve expensive materials, appliances, and equipment stored on-site. These items can be vulnerable to theft or damage, especially when work is ongoing. Your existing home insurance policy may not automatically cover such items during renovations.
In these cases, consider adding builder’s risk insurance to your policy. Builder’s risk insurance provides protection for materials, appliances, tools, and even structures under construction. It ensures you’re not paying out of pocket if something goes missing or gets damaged mid-renovation.
Renovation projects often involve multiple contractors and tradespeople working on your property. While professional contractors usually carry liability insurance, it typically only covers their own staff and equipment.
If a worker suffers an injury on your property and isn’t adequately insured, you could be held personally liable. This risk extends to delivery personnel or even friends helping out informally. To protect yourself, make sure your liability coverage within your home insurance policy is sufficient to cover potential claims.
In some cases, it’s wise to increase your liability limit temporarily during the renovation period. Talk to your insurer about options to avoid surprises if something goes wrong.
Aside from builder’s risk coverage, your insurer may offer temporary insurance options to fill any gaps during renovations. These may include policies that:
It’s worth having a detailed conversation with your provider to ensure every aspect of the project is protected from start to finish.
Keeping your insurer informed can sometimes lower your premiums. Some upgrades reduce risk, which can lead to savings. Here are a few examples of renovations that could qualify you for a discount:
Old wiring, such as knob-and-tube systems, poses a serious fire hazard and often results in higher insurance premiums—or difficulty securing coverage at all. If you modernize your home’s electrical system, inform your insurer. You may become eligible for lower premiums or access to more competitive insurance providers.
Installing a home alarm system, security cameras, or a third-party monitoring service reduces your home’s risk of break-ins. Insurance companies reward risk reduction with lower rates. After you upgrade your home’s security, request a premium review.
No one wants sewage flooding their beautifully renovated basement. Adding a sewer backup valve or sump pump while renovating can help prevent this nightmare and could qualify you for a discount. It’s both a practical and financially smart improvement.
A new roof not only protects your home from water damage but also reduces your likelihood of making a claim. Insurance companies in Ontario often offer better rates to homeowners with new, high-quality roofs. If you replace your roof, notify your insurer to potentially lower your premium.
Here are a few practical steps to keep your renovation process as stress-free and protected as possible:
At Begin Insurance, our brokers work with leading Canadian insurers to help you find the best insurance for your newly improved home. We take the time to understand your renovation plans, identify any gaps in coverage, and recommend options tailored to your needs and budget. Whether you're replacing your roof, rewiring your home, or adding square footage, we’ll make sure your insurance policy reflects those updates accurately. Plus, we’ll help you uncover potential discounts that can reduce your premium without compromising coverage. Contact us today to get started, or request a home insurance quote online—it only takes a few minutes and can give you peace of mind as you renovate with confidence.
Posted Jul 4, 2019