Did you do a home reno during the pandemic or are thinking of doing one now? It seems Canadians have been re-evaluating their homes as renovations are up across Canada. Whether you’re doing a renovation to increase your home value or to your Pinterest fantasy, did you inform your insurance broker?
When do I need to talk to my insurance broker?
Last year, Canadian homeowners spent on average $13,000 on home renovations, an increase of $4,700 from the previous year. But did you know that your typical home insurance policy states any renovation exceeding $5,000, needs to be notified to your broker to maintain coverage provisions? Don’t skip this step as it can be a costly mistake in the future. Your broker can guide you to ensure you’re protected during and after your renovation.
What do I need to tell my broker?
From upgrading to a finished basement, home office, or outdoor space, your broker will inform you if additional coverage is needed. Coverage may be needed in case of bodily injury or accident, and if the renovations will leave you underinsured. You also need to inform your broker because if a claim is made during the renovation, it may not be covered if you failed to notify. Protect your investment and make sure to tell your broker:
- What you plan to do, are doing or did to your property
- An inventory of new items and areas (such as appliances, furniture, art, custom kitchen, bathroom updates, new plumbing, heating, and cooling, etc.) to help assist in the settlement of a loss or claim
- Who your licensed contractor is and if they’re insured. You should also find out who their insurer is, their coverage limits, and policy terms (including any trades and sub-trades that are being used)
- Inform your broker if any building permits were required
Can a home renovation lower my insurance costs?
Yes! Not all renovations are made equal, and your reno may actually decrease your insurance costs. Below is a list of home renovations that can lower your home insurance premium:
- Installing a new roof, or new heating and cooling systems
- Updating old and outdated plumbing and wiring
- Installing an alarm/ security system or other loss mitigation items
A lot can happen, and it only benefits you to talk to your broker before and after your home renovation. Talk to a dbi broker today to have all your home renovation questions answered.