Planning a Home Renovation? Here’s When to Notify Your Insurance Broker
With the arrival of spring, many homeowners are considering home renovations. In fact, in 2024, “nearly half of Canadians (49%) were in the process of planning, executing or have recently completed home improvements. Homeowners are reporting higher expenditures, with an average expected renovation cost of $19,000, which is nearly double the reported spend in 2019” (CIBC).
Whether updating your kitchen, adding a deck, or making structural changes, home renovations can increase your property’s value and improve your living space. But did you know that certain renovations could impact your home insurance coverage? Before you start your next project, it’s essential to understand when you should notify your insurance broker.
Why Your Broker Needs to Know About Renovations
Home insurance policies are based on the condition and value of your home at the time of coverage. “Insurance policies often stipulate a homeowner must tell their broker or insurer about any remodelling plans once those renovations exceed $5,000, in order to maintain coverage provisions” (Canadian Underwriter). Your current policy may no longer provide adequate protection when you make significant changes. Here’s why it’s essential to inform your broker:
Increased Home Value – Major renovations like kitchen remodels, bathroom upgrades, or finishing a basement can significantly increase your home’s value. Your coverage should reflect these improvements to ensure your home is fully protected.
Structural Changes and Additions – If you’re adding square footage, such as a home extension or a new garage, your policy may need an update to include these additions.
Higher Risk Features – Installing a swimming pool, hot tub, or even a wood-burning stove can affect your liability coverage. Your broker can help ensure you have the proper protection in place.
Temporary Vacancies – If you need to move out during renovations, your home may be considered vacant, impacting your coverage. Some policies require additional protection for vacant homes.
What Types of Renovations Should Be Reported?
Not all home renovations require you to notify your broker, but here are some that typically do:
Major interior remodels (kitchens, bathrooms, basements)
Structural changes (additions, removing walls, foundation work)
Roof replacements
Electrical, plumbing, or HVAC system upgrades
Installation of a swimming pool, hot tub, or fireplace
Minor updates, like painting or replacing flooring, generally won’t affect your insurance policy. However, it's always best to check with your broker if you're unsure.
How Your Broker Can Help
Your broker can assess your current policy and determine if adjustments are necessary. They can also:
Recommend coverage updates to protect your newly renovated space
Ensure you have liability coverage for potential risks
Advise on builder’s risk insurance if you’re working with contractors
By keeping your insurance broker informed, you can avoid potential gaps in coverage and ensure your home remains protected.
Planning a Home Renovation? Contact dbi Brokers Today!
Before you start your next home improvement project, contact the team at dbi Brokers. We’ll help you understand how your renovations could impact your insurance and ensure you have the right coverage. Email ebrokers@dbibrokers.ca or call 1-800-268-3311 for personalized service. You can also visit our Home Insurance page for more details.
