Green home renovations

Homeowners across Canada are facing new risks, including climate change and more expensive utility costs. With 2025 bringing extreme heat waves, wildfires, severe flooding, and other severe weather events, green home renovations are no longer negotiable, they're a must.

Electricity generation decreased by approximately 7% year-over-year in April 2024 due to extreme drought, leading to a hydroelectric output that was down by 11.9%. Needless to say, Canadians are feeling the pinch on their wallets, which is why homeowners are looking for ways to future-proof their homes against financial and environmental uncertainties.

Luckily, both federal and provincial governments are offering homeowners incentives to help cover the costs of sustainable upgrades, from the Canada Greener Homes Initiative to local municipal grants. Investing in these upgrades can not only lower your energy costs but can also influence your home insurance premiums and overall customer risk profile. For example, heat pump systems move heat, rather than generate it through a combustion process, to provide year-round comfort that's safer for you and your loved ones, at a lower cost.

Energy-Efficient insulation options for Canadian homes

Upgrading your home's insulation is one of the easiest and most cost-effective green renovations you can make. Poor insulation can lead to energy waste, causing poor indoor comfort levels during the winter and summer months. By improving your insulation and sealing gaps throughout your house, you're ultimately enhancing the R-value of your property, which measures your insulation's ability to prevent the gain and loss of heat in your home. If you use electric heat or air conditioners this can also mean a reduction in your energy bills due to less heat loss.

Types of insulation to consider

Common types of insulation you may want to consider include:

Spray foam

Spray foam is ideal for tight spaces, gaps, and cracks throughout your house. The spray foam insulation works by expanding to fill the gaps to create an air-tight seal. Compared to other insulation materials, it has one of the highest R-values per inch.

Cellulose

Cellulose is made of recycled paper products, making it a great eco-friendly option for homeowners wanting to insulate their attics and wall cavities.

Fibre glass

Fibreglass is another affordable choice that's commonly used in homes, offering a moderate R-Value.

Best areas to insulate

The sections that follow outline the most effective areas to insulate:

• Attics
• Exterior walls
• Basements and crawlspaces
• Around windows and doors

Costs and return on investment

According to Natural Resources Canada, improving the insulation in your home can reduce heating costs by up to 30% annually. This can be especially beneficial for those living in provinces like Alberta, where temperatures plummet well below freezing for months, which could translate into hundreds of dollars in savings. In terms of costs, homeowners can expect to pay anywhere between $2,000 to $5,000, but this can vary substantially based on where you live, the type of materials you use, and the square footage of your home.

Impact on comfort and monthly costs

Besides reducing your monthly energy bills, upgrading your insulation also helps maintain your indoor temperatures, improving your home comfort year round. Additionally, it can reduce your carbon footprint by decreasing how often you use your heating and cooling systems, which burn fossil fuels.

Impact on insurance: A well-insulated home is less likely to experience burst pipes or moisture, which can lead to damages and insurance claims that increase your premiums.

Solar Panels: are they worth it?

Solar panels are one of the most sustainable and renewable green home renovations you can invest in. With rising electricity costs and growing government support, if you want to lower your expenses and help the environment, this is the way to do it:

Costs and break-even timeline

The cost of a solar panel installation in Canada can range between $15,000 to $30,000 depending on where you live and the size of your home. The break-even point, which is when your total expenses and revenue are equal, is around 6 to 10 years. Afterwards, you can experience upwards of 20 years of free electricity.

Federal and provincial program incentives

Programs like the Canada Greener Homes Grant offer rebates of up to $5,000 for solar panel installation. Some provinces offer additional incentives. For example, in British Columbia, BC Hydro offers up to $10,000 in rebates, while in Ontario, Enbridge Gas is also offering up to $10,00 for residential installations.

Insurance implications

It's important to note that the installation of solar panels can impact your homeowner's insurance in one of two ways. The first is that it can increase your house's replacement value, which can raise your premiums. On the other hand, insurers may offer discounts for sustainable upgrades. So, the next time you're up for a renewal, ask your insurance company whether you qualify for any savings.

Maintenance requirements

One of the best things about installing solar panels on your home is that they require minimal cleaning and maintenance throughout the year. Typically, twice a year is enough to keep the panels clean and efficient. However, after heavy snowfall, the snow should be removed to maximize output during the winter.

Smart Thermostats and energy-efficient HVAC systems

Did you know that heating and cooling account for up to 60% of a home's energy use in Canada per year? Given this statistic, switching to a smart thermostat and high energy-efficiency HVAC system can drastically reduce your household's carbon footprint. Smart thermostats and HVAC systems—what you should know:

Potential savings

Studies show that smart thermostats can reduce your home's energy bills by approximately 10% to 15% a year. These intuitive devices learn your family's heating and cooling habits before adjusting your indoor temperatures automatically to mirror these needs. They also allow homeowners to remotely control their indoor climate through their smartphone, optimizing comfort and energy efficiency.

Popular models

Leading smart thermostats and energy-efficient HVAC units include:

• Nest learning thermostat: Offers automated heating and cooling scheduling, along with energy usage reports.
• Ecobee SmartThermostat: Comes with integrated room sensors to prevent hot and cold spots for optimized comfort and indoor air quality.

HVAC energy efficiency (furnaces & heat pump systems)

Pairing your smart thermostats with modern HVAC systems with ENERGY STAR ratings uses less energy than outdated, non-certified models. Opting for a high-efficiency furnace or heat pump system can further your monthly savings. Read on for a review of HVAC incentive programs and insurance implications:

Federal and provincial program incentives

Homeowners may qualify for savings for their new HVAC system and thermostats through the Canada Greener Homes Program and local, municipal incentives.

Insurance implications

Optimized air quality and indoor temperatures can help prevent insurance claims, especially in the winter. For example, with a smart thermostat device, you can maintain a comfortable temperature while avoiding frozen or burst pipes.

Water efficiency updates

Water-saving improvements are often overlooked when it comes to green-proofing your home. However, ensuring your home addition includes updated plumbing fixtures can lead to meaningful benefits in terms of water conservation and insurance risk prevention. For example, reducing your household's water consumption not only helps preserve Canada’s freshwater resources but also decreases the risk of costly plumbing problems that could lead to preventable insurance claims. The key updates to be aware of are:

Updates to consider

Some updates you may want to consider include:

• Low-flow faucets and shower heads: These plumbing fixtures are intended to reduce your household water usage by up to 60%, without sacrificing your water pressure. Throughout the year, this can lead to thousands of litres saved.
• Dual-flush toilets: These toilets allow you to choose low or high water flushes, which use 20% less water than conventional 1.6-gallon toilets.
• Greywater recycling systems: These garden recycling systems reuse water from your sinks, showers, and laundry to irrigate parts of your garden, which can substantially cut your water usage.
• Rain barrels: Rain barrels capture rainwater you can later use outdoors, reducing your runoff while lowering your water bill.

Environmental and insurance perks

Energy-efficient water usage in your home not only reduces your utility costs but also protects your home. Less water means less strain on your plumbing system, which can lower the likelihood of leaks, burst pipes, and sewer backups. This can lessen your chances of filing water damage claims in the future and lower your risk profile, which may qualify you for a discount.

Green roofing options

What a lot of homeowners don't know is that their roof also plays a role in their home's home’s energy efficiency levels. Switching to a green roofing system can significantly reduce your home's heat absorption during those hot Canadian summers, improve insulation throughout the year, and even extend the life of your roof in general. Read on for an overview of green roof types and options:

Types of green roofs

• Cool roofs: Cool roofs use reflective materials, such as white membranes or coated shingles, to reflect sunlight, which absorbs less heat. This will keep your attic and living spaces cooler in summertime, which is proven to reduce your air conditioning costs by up to 15%. Reflective asphalt shingles and metal roofing are common cool roof options in Canadian homes.
• Green roofs: Green roof systems involve installing layers of soil and plants on top of your home. Doing so provides natural insulation for your home, absorbs rainwater, reduces water runoff, and improves the local air quality in your neighbourhood.
• Solar roof tiles: Solar roof tiles function like regular shingles but also as solar panels, offering energy generation in a sleek and modern design.

Insurance implications

Green and cool roofs can last longer than traditional shingles due to reduced stress from extreme temperatures. Cool roofs can also prevent ice damming by preventing uneven snow melt and ice formation. This can lower your insurance risk profile, leading to savings on your monthly premiums.

Windows & doors: small changes, big impact

Upgrading your windows and doors might seem unimportant, but the benefits of energy efficiency, indoor comfort, and savings can be significant. Old or loosely sealed doors and windows are a major cause of heat loss, especially during the winter months, which can lead to expensive energy bills.

ENERGY STAR doors and windows are manufactured to meet strict efficiency standards and often feature double or triple-paned glass, low-emissivity (Low-E) coatings to reduce heat transfer, and insulated frames. All of these features can reduce heat loss by up to 30%, which translates into significant savings on your heating bills, especially if you live in a part of Canada that experiences long periods of below-freezing temperatures in the wintertime. We now explore choices for windows doors including costs and implications:

The costs

On average, the cost of a new window for your home can range anywhere between $800 and $4,000 per window. Multiply that by how many windows there are throughout your home, and add in the cost of new doors, and you'll be surprised at just how expensive a replacement can be.

The benefits

That being said, to encourage homeowners in Canada to spend money on sustainable home enhancements, provincial rebates and the Canada Greener Homes Loan can help offset the initial expense. Additionally, new doors and windows can also help you save up to 10–25% annually on heating and cooling, which will pay off your initial investment over time.

Beyond energy savings, new windows and doors also reduce external noise from your surrounding neighbourhood, improve your home security, and block drafts that cause interior temperature fluctuations throughout the year.

Insurance implications

While new windows and doors may increase your home should you get a home appraisal and monthly premiums, you may qualify for an insurance discount given the reduced risk of break-ins and weather damage these enhancements bring.

Eco-Friendly building materials and finishes

Opting for sustainable materials for your home renovations doesn't just have to reduce your carbon footprint, it can also enhance your interior design aesthetic. Modern, eco-friendly materials offer an elevated balance of durability, design, and sustainability that can improve your quality or life and increase your property value. We now explore choices for building materials and finishes, including costs and implications:

Popular options

You can choose from the following:

• Bamboo: Bamboo is a strong, aesthetic alternative to hardwood flooring. It's moisture-resistant, durable, and available in a variety of finishes that you can seamlessly match to your current or new interior design goals.
• Reclaimed wood: Using salvaged wood from old buildings or barns is not only sustainable, but can also add character to your home.
• VOC-Free paint: Many old paints contain dangerous substances known as volatile organic compounds (VOCs). VOC-free or low-VOC alternatives can help improve your indoor air quality while lowering safety risks, particularly for seniors, young children, and those with allergies.

Costs

Bamboo flooring can cost anywhere between $2 to $5 per square foot, making it comparable to traditional flooring options. VOC-free paints are also comparable in price. In contrast, reclaimed wood can have a higher price tag, unless you're able to find your perfect pieces out in nature yourself.

Insurance implications

Making these enhancements to your home won't necessarily increase your premiums. However, if these enhancements largely increase the value of your home, you may see an increase in your premiums due to increased property value.

Incentives, rebates, and financing programs

Investing in green home renovations can come with a hefty price tag. But several incentives, rebates, and financing programs make eco-upgrades more affordable:

1. Canada greener homes incentives

This government-funded initiative provides funding of up to $5,000 for qualified energy-efficient home renovations such as insulation, windows, heat pumps, and solar panels. It additionally includes up to $600 to pay for the cost of an EnerGuide evaluation.

2. CMHC eco plus

This program, sponsored by the Canada Mortgage and Housing Corporation (CMHC), gives a partial premium return of up to 25% on mortgage loan insurance for properties that meet certain energy efficiency requirements.

3. Local and municipal grants

Many provinces and municipalities have their green rebates, including:

1. Toronto's Home Energy Loan Program
2. Alberta’s Clean Energy Improvement Program
3. British Columbia's CleanBC Better Homes and Home Renovation Program

Pro Tip: Take advantage of multiple rebates to maximize your savings!

Insurance tips for green homeowners

If you're thinking about making green enhancements to your home, keeping your insurance company in the loop is essential. Notify your insurer about major changes like solar panel installations, roof replacements, or new insulation, as these may impact your home’s replacement value and risk profile, leading to more expensive premiums.

Luckily, however, you may be eligible for green discounts with your insurer. So, ensure that you speak with an agent or broker to learn more about how to save on your insurance costs. Take advantage of our home renovations checklist to learn more about what to consider when renovating your house.

How BrokerLink can help

Whether you have questions about green renovations, discounts, or other home insurance needs, the experienced brokers from BrokerLink are here to help. Coverage we can help you acquire includes:

• Condo Insurance
• Tenant and Renters Insurance
• Vacation Property & Cottage Insurance
• Renovations Insurance

To work with us, contact BrokerLink over the phone or by email to speak with a broker directly. Customers can also get a free insurance quote using our online quote tool at any time!

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