Renovating? – Updating Your Home, Means You Should also Update Your Home Insurance!


Embarking on home renovations is an exciting journey that can enhance your living space and boost the value of your property. However, it’s essential to be aware that renovations can have a significant impact on your insurance coverage. In this blog post, we’ll explore the various ways in which renovations can influence your insurance and provide insights on how to ensure you’re adequately protected throughout the process.

Increased Property Value and Coverage Adjustments on your Home Insurnace:

Renovations often result in an increase in the overall value of your home. It’s crucial to notify your insurance provider about these improvements to ensure that your coverage reflects the updated value of your property. Failing to adjust your coverage may leave you underinsured in the event of a loss.

Does Your Home Insurance Cover Temporary Relocation and Liability Concerns:

Extensive renovations may require you to temporarily move out of your home. In such cases, it’s essential to inform your insurance company, as your coverage may need to be adjusted to account for the increased risk of theft, vandalism, or other perils associated with vacant homes. Additionally, liability coverage should be maintained to protect against injuries that may occur during the renovation process.

Builder’s Risk Insurance:

If you’re hiring contractors for the renovation project, consider obtaining builder’s risk insurance. This type of coverage protects against damage to the structure and materials during construction. While the contractors should have their insurance, builder’s risk insurance provides an extra layer of protection for you as the homeowner.

Home Renovation Endorsements:

Some insurance providers offer specific endorsements tailored to homeowners undergoing renovations. These endorsements may provide coverage for construction materials, tools, and equipment on-site, ensuring that you’re protected against theft or damage during the renovation process.

Updating Home Systems, Update your Home Insurance:

Renovations often involve updating electrical, plumbing, or heating systems. Inform your insurance broker about these upgrades, as it may lead to discounts on your premiums. Modernized systems may also reduce the risk of certain perils, leading to potential cost savings.

DIY Projects and Home Insurance Liability Coverage:

If you’re tackling do-it-yourself (DIY) renovations, be aware that your insurance coverage may be affected if your work results in property damage or injuries. Consult with your insurance provider to understand the extent of coverage for DIY projects and consider hiring professionals for high-risk tasks.

Regular Communication with Your Home Insurance Broker:

Communication is key throughout the renovation process. Keep your home insurance broker updated on the progress of the project, any changes in occupancy, and the completion date. Timely communication ensures that your coverage aligns with the evolving needs of your home.

Reviewing Policy Exclusions:

Take the time to review your insurance policy and understand any exclusions related to renovations. Certain types of renovations, such as major structural changes or additions, may require additional considerations in your coverage.

In the end, embarking on home renovations is an exciting endeavor, but it’s crucial to navigate the associated insurance considerations to protect your investment adequately. By staying proactive, communicating with your broker, and exploring specific endorsements or adjustments, you can ensure that your insurance coverage evolves alongside your home improvements, providing peace of mind throughout the renovation journey.

Thinking about Renovations for your Home? Give us a call to make sure you are protected!

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