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ArticlesRenovations +
Renovations are starting (or completed!) Do I have to let my Insurance Company know about the changes?
Yes! Here are a just a few ideas and reasons why.
Whether you are planning an addition to your home, completing a recreation room, adding a bathroom, or replacing carpet with hardwood, these add significantly to the value of your home.
It is critical to advise your insurance broker of these changes. If your home is underinsured you could be back to where you started in the event of a loss, or worse. To check the replacement value of your home, your broker will complete a Home Evaluator with you. This involves reviewing details like square footage, finished rooms, decks, special features, etc. and takes about 15 minutes. The evaluator calculates an industry accepted replacement cost of your home so you can make sure you are properly insured.
If you are building a garage, shed or greenhouse, remember that most policies include outbuildings at 10% of the value of your house, so if your house is worth $120,000 and you get the garage of your dreams, it probably won’t be covered properly.
If you add a hot tub or children’s play centre, you may need to think about increased liability exposure and how to reduce the risk of a law suit if someone is injured on your property. There is a very high duty of care when it comes to risks to children … and if you have something that will attract them – with or without your permission – you need to be aware and take precautionary steps.
If you add a fireplace or wood-burning stove
note that most companies require an inspection to verify it is installed properly. Some charge an additional premium for the extra risk as well. Also, unless you have a comprehensive homeowners form, you may not be covered for smoke damage to your contents resulting from the operation of the fireplace (ie. you forget to turn the damper).
Most policies cover material and supplies located on or adjacent to the premises, intended for the use in the construction, alteration or repair of your dwelling - but don’t assume! Materials intended for use at a cottage or other location are not insured unless listed on the policy.
If you are hiring someone for the job, do your homework! Check their references and insurance. If damage occurs as a result of faulty material or workmanship it is not covered by any insurance policy.
If you are doing major changes, you may need to add “course of construction” coverage.
Make sure you have something to show for your hard work in the years to come!
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