Renovating a house checklist

Have you ever found yourself imagining what you’d like to change about a specific room in your home? You get all excited just thinking about all the things you could do, like modernizing the kitchen or finally converting the basement-turned-storage-area into your dedicated rec room for family gatherings or game nights. As exciting as it is, once you realize just how many steps and decisions are involved, sometimes the joy might start to dim a little as the overwhelm rolls in. That’s where this home renovation checklist can help!

Below, we’ll walk you through the various permits and code requirements you might need for your project and what to consider when hiring contractors and reviewing contracts. We’ll also walk you through updating your home insurance during construction, how to manage changes as they come up and how to handle the final steps. Planning a home renovation or remodel? Speak with a BrokerLink advisor to make sure you have the right coverage before you start.

1. Figuring out your vision for your renovation project

Before you start calling contractors or pricing out tile, it’s a good idea to start planning by forming a clear idea of what exactly you’re trying to create by figuring out:

Your limits

Start by deciding on a budget. It’s essential to know your monetary limit because, without knowing how much you can or are willing to spend on your renovation, you risk spending way more than you may be able to afford. According to Century 21 Canada, a small renovation project currently costs on average between $5,000 and $15,000, while a large remodelling project can cost anywhere from $50,000 to $200,000 or more.

Another important consideration is your timeline. This will help establish when you need or want the renovations to be completed. Knowing your timeline can help shape the scope of work and your renovation schedule. You’ll also want to find out about any local zoning requirements for your area if you plan to add something like an additional room or garage onto your home.

Your wants vs needs

Next, you’ll want to make a wish list, write down everything you want and then prioritize it into must-haves you can’t compromise on and extras or nice-to-haves. These are the things that can be changed or removed if you start getting too close to the end of your budget or timeline.

What you’re working with

Walk around the room(s) that you’re planning to renovate with your phone and a tape measure. Take photos, write down measurements and note or mark the location of things like plumbing or electrical panels.

Why you’re renovating

Some people renovate with resale in mind and look for updates that tend to pay off when it’s time to move, like updated plumbing, kitchen or bathroom renovations. Others are staying put and want a home that simply works better for everyday life. Maybe that means a better main floor layout, more storage space in your laundry room or a modern kitchen to cook in with your family. Think about what matters to you right now, whether that’s increasing the value of your home or just making your living space more usable, then shape your priorities around the outcome you actually want.

Your early scope

Create an early renovation plan that outlines the type of work you think needs to happen in the remodeling project. You may also want to make note of any areas that you suspect might be hiding surprises once the walls open up, including hidden structural issues or possible foundation problems.

Your DIY boundaries

If you enjoy doing hands-on work, you can definitely save the small cosmetic tasks for yourself. But anything involving structure, electrical or gas generally belongs with a licensed professional. It keeps the project safer and can help you avoid expensive issues like structural repairs down the line.

2. Permits and the rules your project has to follow

From entire houses to small powder rooms, every project has to play by the rules, so it may be helpful to know which rules are set by which governing bodies. The National Building Code of Canada sets the model standards for safety, structure, fire protection and energy performance, but it’s each province or territory that takes that model and turns it into their own building codes so they can adjust them to suit local climates and regulations.

Then, municipalities enforce those provincial rules through things like permits and inspections while also handling most of the day-to-day requirements, like zoning limits, setbacks and anything tied to noise, parking and work hours. Note that zoning rules decide what you can build, while permits govern how the work must be done safely. Let's take a look:

Permits

Before any major work begins, take a look at the following permits that your project might need. Not every home will require everything on this list, but these are some of the most common ones across Canada:

It’s important to make sure you have the right permits for every stage of the home renovation project. For example, in Ontario, almost all electrical work must be filed as a “notification” (i.e., permit) with the Electrical Safety Authority (ESA) ahead of time. The ESA notes that a building permit doesn’t replace an electrical notification, and your project may need both. Federal guidance also reminds Canadian homeowners to check in with their local municipal office to make sure the right permits are in place before any work starts. Even if a contractor is pulling permits for your renovation work, get at least three estimates before hiring them.

If you choose to skip getting your permits, it can lead to stop-work orders, fines, insurance issues and even challenges if you ever decide to sell the home. For example, in Ontario, under the Building Code Act, homeowners can be fined $50,000 to $100,000 if they work without the required permit and in Alberta, the Safety Codes Act states a fine of $10,000 per day up to $100,000.

Inspections

Most projects require a few inspections at certain points throughout the renovation process, such as:

• Structural changes once the framing is complete

• Electrical and plumbing work before the walls are closed, with insulation installed before closing up the walls

• A final inspection that confirms the space meets provincial and local building codes with sign-off from building officials

These checkpoints are there to help you catch any problems early on in the project, before they become much more expensive or even unsafe to fix.

Be prepared

As the homeowner, you'll want or need to:

• Figure out which permits your project needs

• Schedule your inspections early to avoid delays

• Arrange for underground utility lines to be marked, such as pipes, cables and wires, before any digging starts

• Check your bylaws for things like noise, parking, dumpsters and whether you need to send your neighbours any notices

• Call around to find out about heritage, conservation or tree-protection rules in your area and if you’re renovating an old house with original historical features, restoration should be the first choice

3. Building a house renovation cost plan that works

You should have a realistic budget that shows you the full picture of the project, and not just the big-ticket items you’ve already thought about. The right budget mechanics can help you see what the project will really cost so that you’re not suddenly adjusting plans halfway through because you’ve run out of money. Here's what you should consider:

Choose a budgeting style that fits how you plan

There are generally two main methods that homeowners use when starting a renovation budget:

It’s often recommended that you start with the bottom-up method for accuracy and then check it against the number you set when figuring out your vision of the project to see if it’s realistic.

Handle any allowances and selections early

If you haven’t chosen every finish yet, your contractor may include allowances for things like cabinets or new flooring. The earlier you make these final selections, the more time your contractor will have to order the building materials and hopefully avoid potential delays due to backorders or supply chain disruptions.

Set aside a contingency from day one

If you know someone who’s renovated their home before or you’re a fan of watching home renovation shows on HGTV, you’re probably already familiar with how these projects almost never go according to plan. Once walls open or old materials come out, you might find things like aging wiring, old pipes, hidden water damage or even framing that isn’t up to code. That’s why it’s important to budget for contingency so that these safety and compliance issues can be addressed to continue the project.

For something like cosmetic updates, many find that a buffer of around 10% of your budget usually covers it. But for older homes or anything involving structure, you may want to budget around 15% to 20% because you never know what the conditions might be like behind the walls and a home inspection can help flag some of those risks before demolition starts and reveal how much time and money it will cost to fix them. That’s why Health Canada advises hiring a professional to test for asbestos in homes built before 1990, along with things like radon levels and lead paint, before you even start renovating or remodelling.

Make sure to plan for unexpected price changes

Residential construction material costs in Canada are still rising, even though it’s been several years now since the pandemic. That’s why it’s important to order your important items early or choose alternates to help keep you on budget because there’s a good chance the price will inflate again. Some homeowners may even include a note in their contract with their contractors about how price changes should be handled.

Don’t forget about the soft costs

Soft costs are the costs of the project that don’t show up as materials or labour but still need to be budgeted for. This includes things like:

• Taxes (GST/HST)

• Contractor and inspection fees

• Shipping and delivery fees

• Debris removal fees, disposal and clean-up costs

• Temporary protection (floor coverings, dust barriers), especially if you’re living in the home during renovations

• Temporary storage rentals or alternative living arrangements if part of the home becomes uninhabitable

Check in with your budget weekly

Taking a weekly look at spending and any changes, plus having established clear rules for approving extra costs, can help keep the project moving in the right direction without any unexpected surprises creeping in.

4. Financing options and how best to use them

Paying for a home remodel or renovation often works best when you can choose an approach that fits both your comfort level and the pace of the project. Here's what you should consider:

Payment options

Some homeowners use their savings for early work, while others may rely on a Home Equity Line of Credit (HELOC), which is a line of credit secured against the equity in your home. It often has a lower interest rate than other types of borrowing and gives you flexibility to draw only what you need as the project moves along. Some borrowers may also choose a renovation loan instead, if they’re looking for fixed payments or a set repayment schedule.

If you’re planning to borrow, keep in mind that your lender may need to see your permits, proof of insurance during construction and a clear agreement with your contractor before they’ll release any funds. They may also ask to see any inspection results throughout the project.

Match payments to the pace of the project

It’s also a good idea to match your outgoing payments to actual progress with a draw schedule. This helps you pay for each stage of the project by linking each payment to a specific stage of completed work. It helps you avoid sending too much money at the start, known as front-loading, which could put you at risk if the project takes longer than expected or if the scope happens to change mid-project.

First, you’ll need to decide how payments will be made, such as by cheque or bank transfer, and then you can link each one to a specific milestone. Also, you may want to set aside a little buffer that’s separate from your main budget just so you’re not scrambling if a cost runs slightly higher than planned.

5. Protecting your home while it’s under construction

Anytime you start a renovation project, it’s going to introduce new risks, new people on site and new materials moving in and out of your home. That’s why it’s important to make sure both you and your contractor(s) have the right insurance in place before you begin work. You can use the following renovation insurance guide to help you through each stage of the project:

Before work begins

• Confirm who carries course of construction or builder’s risk insurance

• Ask your contractor for proof of commercial general liability coverage and workers’ compensation

• Request to be added as an additional insured if you want extra protection

• Share your renovation scope and timelines with your BrokerLink advisor, and verify any requirements for alarms, water shutoff, temporary security or access changes

During construction

• Clarify with contractor(s) who insures materials when on-site, in transit and in off-site storage

• Keep copies of all contracts, permits and inspection reports in one place

• Update your insurer if timelines change or if the home will be vacant or partially occupied

As the project wraps up

• Confirm the end date for builder’s risk coverage

• Review your home policy limits with your BrokerLink advisor and inform them of any new structures, built-ins or upgraded finishes that will affect your coverage needs

• Double-check that all required inspections have passed and all documentation is complete

Please note that this guide provides general information for Canadian homeowners and may not reflect the specifics or requirements of your policy. Also, different insurers may have their own rules for vacancy or reduced occupancy. It’s always a good idea to check with your BrokerLink advisor to confirm what applies to your coverage before the project begins. Reach out to us today for help with updating your current home insurance policy or to find a renovation insurance policy that ensures you’re protected during the entirety of your project.

6. Building your home renovation team

Every renovation needs someone steering the work, but the role they play can look a little different depending on what you’re comfortable with. Some give you more help, some give you more control, and the best fit usually comes down to what kind of support you want as the project moves along. Take a look:

Doing your due diligence when seeking professional help

When you’re narrowing down your choices, it’s important that you ask to see recent projects they’ve finished that are similar to yours. It can give you a feel for their quality of work and how they manage timelines. Ask how they choose their trades and what their day-to-day communication looks like. You should also ask about their payment structure. You can do so by asking for a sample draw schedule, so you know when payments are released and what needs to be completed at each step. This can help you avoid paying too much up front and keep the expectations clear for everyone involved for a more successful renovation.

It’s also important that you verify that they’re properly licensed in your province and ask for proof of insurance and workers’ compensation or WSIB coverage. Ask to see the certificates and take a minute to confirm that they’re current. It may feel like one extra step, but it protects you if something goes wrong on site. To help make this easier, some provinces offer online contractor lookup tools that let you confirm whether a builder or contractor is properly licensed or registered, such as Ontario’s Home Construction Regulatory Authority (HCRA) database for builders or WorkSafeBC for employers.

7. Understanding the contract before you sign

A renovation project is much more likely to run smoothly when the contract is clear about who is doing what and how decisions will be made. Contractors often follow two main pricing models:

Defining the work

A good contract should capture all the details of the home remodeling project, including responsibilities, exclusions and exactly what the project includes. You’ll want to look for a written scope of work that lays out the tasks, like who is responsible for permits or ordering materials, along with an outline of what’s included and what isn’t. If you still need to choose certain finishes or fixtures, the allowances for those choices should be easy to understand so you know what your budget actually covers.

As the cost of materials and fixtures may shift because of supply conditions, your contract might include things like unit rates or escalation language that explains how those changes will be handled. Things like lead times, samples, drawings or mock-ups should also be noted in it.

Setting up a fair payment structure

Your payments should move at the same pace as the work. A draw schedule helps with that by linking each payment to a clear milestone, so you’re paying for what’s been done rather than what’s promised.

In many provinces, such as under Ontario’s Construction Act or British Columbia’s Builders Lien Act, a portion of each payment is actually required to be kept on hold, known as a statutory holdback, until the project wraps up to protect workers or suppliers if unpaid. As each draw comes up, it’s a good idea to ask for some form of proof that any subcontractors have been paid.

Setting expectations

It also helps to be clear about how the relationship ends once the job is finished. Your contract should explain:

• What kind of follow-up or warranty support your contractor offers

• Who’s responsible for the cleanup

• What happens if the agreement has to be ended early for any reason

• How questions or concerns will be handled if they come up during the project

8. Planning the project details

A project will often start to feel much more manageable once the design is sorted out and everyone is working from the same detailed plan. The best way to do this is to get the design as close to complete as you can before any of the work even begins. This includes your floor plan, elevations and anything that affects your mechanical, electrical or plumbing layout.

If you’re able to get these decisions sorted out early, it may help you avoid making mid-project changes to your plumbing, wiring or framing, since those are often harder to adjust once the work has started. And while this may be a long way off yet, as you’re shaping the plan, it may help to think about long-term comfort, too.

Accessibility features and even energy upgrades, such as improved insulation, better windows, energy-efficient lighting or a heat pump, may be easier to incorporate now while you’re already renovating, rather than later. There are lots of things to keep in mind:

Make your product choices clear

A detailed product and material selection list can help you keep the project on track, especially as you collect design ideas before finalizing products and finishes. Try to note details like:

• Brand and model

• Colour or finish

• Wood or tile

• Quantities you’ll need

• Any alternatives you’d accept

This can help you avoid delays once it’s time to start ordering. If you want to see samples or mock-ups before committing, you may want to add those steps to your approval process so that any decisions are still made at the right time, and design websites can help you compare styles and materials before approvals are locked in.

Plan for materials and lead times

Because some items may take longer to arrive than others, you may want to keep an eye on things like:

• Windows and doors

• Custom millwork

• Specialty panels or fixtures

When you plan ahead by ordering these types of materials or items early, it can help you maintain the schedule. It’s also a good idea to talk through backup options you’d be willing to use in case something becomes unavailable. When the materials show up, it’s best to take a minute to confirm that the order is accurate and in good shape. Refer to your contract to confirm who is responsible for storing and protecting these materials.

Build a realistic schedule

A workable schedule should account for things like permitting, ordering materials, contractor mobilization and inspections. Some tasks will be “must-do” items that can affect everything that follows, while other tasks may have a bit more flexibility. You may also want to factor in delays from bad weather, drying times and when you’d like to move back into your home. It’s also a good idea to schedule weekly look-ahead meetings to help the project stay on track. These can give everyone a chance to review what’s coming up, flag any potential risks and adjust plans early.

9. Navigating change orders

Even with careful planning, changes are likely to happen. For instance, you might want to update materials, shift layouts or uncover unexpected conditions. But sometimes those changes come with a price tag, and that’s when you may need a formal change order. You should be aware of the following:

When is a change order needed?

You’ll likely need a change order whenever something shifts from the original contract. Think of it as a mini-contract update that spells out what’s changing and how it will be handled. You may need a change order if:

• You want to use different materials or fixtures than those in the contract

• The site conditions turn out to be different than expected (e.g., hidden rot, outdated wiring)

• There’s a material cost change, delay or supply shortage

What should a proper change order include?

You’ll want to make sure that every change order has:

• A clear description of the change (scope)

• Updated drawings or notes if the change affects the layout or structure

• How the added cost will be calculated (e.g., lump sum, unit price, allowance)

• Any changes to the schedule or completion date

• Signatures from both you and the contractor before work begins

A written change order can help protect both sides by keeping the project’s scope, pricing and timelines aligned. Keep in mind that it’s important to update your running budget with every change. You can compare your projected cost with your actual costs to make sure you’re still within your comfort zone. Also, don’t forget to keep an eye on how much of your contingency has been used. If costs start creeping up, talk to your team about whether there are any alternate materials or methods that can deliver similar outcomes.

10. Protecting your home after the renovation is complete

Once the work is complete, it’s important that you let your insurer or broker know so that they can update your coverage to reflect the home you have now. Because renovations often increase a home’s rebuild value, your Coverage A (dwelling) or Coverage B (detached structures) limits may need an update. As such, you should let your provider know about any new structures or features that you’ve added to your home, as well as any new certificates or safety features you’ve added, as they may qualify you for discounts.

Please note that you must notify your insurance provider or broker about any home renovations. If you fail to do so, you may be invalidating your home insurance policy and at risk of policy cancellation. It’s also a good time to review your personal liability limit and decide whether adding additional coverage, like an umbrella policy, would make sense.

If you’re unsure what needs to change on your policy after the renovation, a BrokerLink advisor can walk you through it and make sure your coverage matches your latest home improvements. Finally, don’t forget to update your home inventory list so that you have a record of any new finishes, fixtures and appliances in the event that you need to file a home insurance claim.

Contact BrokerLink today

For more information on what insurance, you’ll need for planning an upcoming home renovation, contact BrokerLink. Our licensed insurance advisors have all kinds of expert tips they can provide, like how to make your renovation go off without a hitch and how to save money on your home insurance premiums.

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FAQs on home renovations in Canada

Does home insurance cover home renovations?

Most standard homeowners insurance policies will not cover damage or losses that occur due to home renovations. Therefore, you must notify your insurance provider in advance if you plan to make any renovations to your home. They can tell you how you need to update your coverage to be protected during the renovation process.

How long do home renovations take?

This largely depends on the scope of the renovation, as well as the availability of your chosen contractor. Full home remodels can take up to a year, whereas smaller home renovation projects, like bathroom or kitchen remodels, may only take a number of weeks. For a better idea of how long your home renovation will take, get in touch with a contractor near you.

How much will it cost to renovate my home?

The cost of a home renovation depends on the specific project, the location of the home, and the contractor you hire, among other factors. For a realistic idea of how much your home renovation project will cost, we recommend requesting quotes from contractors in your area. To provide an accurate quote, the contractor will likely do a site visit and get back to you within a matter of weeks.

Where can I buy renovation insurance?

You can purchase renovation insurance from an insurance agent or broker. Renovation insurance is a type of home insurance coverage that can be added as a rider or endorsement to an existing homeowners insurance policy. It can protect you and your home in the event that your home suffers damage or loss during the course of a renovation project.

If you have any questions, contact one of our local branches.