Planning a home renovation project can be a fun and exciting time. Many would turn to television networks like HGTV to watch shows featuring home renovation experts that help viewers make informed decisions on how they plan to upgrade their home.
However, have you noticed by watching these shows there aren’t any tips on how renovation jobs can impact home insurance? Well, if you plan on renovating your home, the Good Hands Advice team has provided its tips to help you make sure you’re aware of the potential implications these renovations can have on your home insurance coverage.
How Can a Home Renovation Impact My Insurance?
Does home insurance cover for home renovations?
If you don’t notify your agent or broker of the changes you are making to your home, you may be putting yourself at risk. Depending on the kind of job you’re doing, your current home policy may not cover you. In other cases, if the limits on your current policy aren’t enough to cover the increase in your home’s value from the improvements, you may not be covered in the event of a loss. If something unexpected were to happen to your home and you’d need to rebuild, you’ll want to be confident that your policy has you covered.
There May Be Changes to Your Policy
Be sure to discuss your options with your agent. If it’s a major project, like increasing the footprint of the home by adding a new room, you’ll have to have your home re-evaluated to have it become part of your policy.
Potential For Discounts
Speaking with your insurance agent or broker before things get underway may also offer opportunities for discussion on changes that could provide you with a discount on your home insurance policy. For example, if you take the steps needed to protect your home by installing in-home monitoring system or installing a water leak detection system for water damage, you may be eligible for a special discount.
Your agent will be able to inform you on other discounts that you may be eligible to receive through your home remodeling project.
Potential Liability
In addition to protecting your home, you should also talk about personal liability coverage. What happens if someone working on your property injures themselves during the renovation? You can help protect yourself against a potential lawsuit by verifying that your contractor is properly insured and has standard liability insurance, as well as workers’ compensation coverage. Ask to see proof of your contractor’s insurance, and make the same request of subcontractors, like electricians and plumbers, who may also be on the job.
Am I Liable For Any Injuries Accrued Through DIY Projects?
If you opt to take on a do-it-yourself project and have friends or family lend a hand, you should check that your own personal liability coverage will have you covered.
Also be sure to do thorough research to ensure any materials you select have been certified by an independent third-party agency, like the CSA or ULC. These logos should be clearly visible and easy to identify.
Advice for First Time Home Renovation Projects?
Prior to commencing any large project, it is essential to consult with your local municipality about obtaining any necessary permits. This is especially the case if the project involves plumbing, electrical, structural changes or additions. The permit application process ensures that your renovations are compliant with the applicable regulations. If you fail to secure a permit where one is required, you may be forced to pause or undo the work, thus leading to extended timelines and additional costs. You may also incur a financial penalty. Be sure to keep copies of any contracts and receipts for materials purchased for the job. And take photos before, during and after the renovation so you have a visual record of all the work.