A recent CIBC news release from last month revealed that Canadian homeowners are continuing to cut back on their renovation spending this year. But regardless of how much, or how little, you may be planning to spend on renovations in 2019, it is often very exciting to take on a project.
However, there is a lot for homeowners to keep in mind when it comes to renovating, and, according to Ratehub.ca, taking note of insurance is just one of the many things to remember.
“Many Canadians will be using the new warm and sunny weather to start a home renovation project,” Ratehub.ca says. “We often hear about the different projects you should be doing come spring time, but we don’t typically see insurance included in that conversation. However, it could be one of the biggest items to consider when undertaking a home reno project. Not letting your insurance provider know about your plans can actually come with big risks – including a denied claim, or worse, a cancelled insurance policy.”
To break things down a little bit more, Matt Hands, Senior Business Unit Manager of Insurance at Ratehub.ca, outlined five important factors homeowners should take note of before renovations.
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Here is what residents need to know about home renovations and insurance in Brampton.
The first factor that Hands outlined comes into play before renovations are even started, and that is for homeowners to connect with their insurance provider to learn about and understand the coverage they have during renovations, and how changes may impact their insurance after the fact.
The second factor has to do with knowing when you’re covered.
“There could actually be a clause that eliminates your coverage if you undertake a home renovation,” Ratehub.ca says. “Plus, if you’re doing any major structural changes, you likely need to update your policy to make it a ‘building under construction’ rather than standard home coverage.”
The next couple of factors come into play when renovations are being completed.
In addition, many homeowners may want to get away from their home once renovations are underway. However, according to Hands, if a homeowner is vacant for 30 days or more, this may actually be in violation of their insurance policy.
And, when it comes to using a contractor, Ratehub.ca notes that it is important for homeowners to check with the contractor to see what their insurance covers.
“Generally, the contractor’s insurance paired with the homeowners’ insurance will provide good coverage,” Ratehub.ca says.
Lastly, Hands notes that there may actually be some insurance benefits to renovations.
“In some cases, improvements that reduce your risk for liability or that protect your home from common hazards that affect your insurance could help lower your premiums,” Ratehub.ca says.
But, according to Ratehub.ca, on the other hand, if improvements escalate the replacement value of the home, premiums may rise.
Are you planning any home renovations this summer?