Turning your home into a construction site – are you covered?

May 6, 2013 1 minute read

Warmer weather means home renovation season. The plans have been drawn up and the contractor hired, but have you considered your insurance? Be sure to check with your broker to ensure your home is protected from start to finish.

Whether you’re planning a little remodel or a big renovation this spring, include insurance in your plans.  Improvements increase the replacement value of your home, so you may need additional coverage. When your home becomes a construction site, it opens you up to additional risks. Call your BrokerLink broker to make sure you’re properly protected.

While most small home construction projects won’t require changes to your policy, there are some restrictions to consider. Insurance may not cover the theft of any building supplies being stored on site, or any vandalism occurring while the property is under construction. Keep in mind most insurance policies also restrict water damage coverage.

If you plan on moving out while construction takes place, let your BrokerLink broker know. Vacating the property for longer than 30 days may invalidate your home insurance. Vacancy permits can be purchased for a small fee to make sure your property remains covered.

When hiring a contractor, make sure they provide proof of Business Liability insurance or commercial general liability insurance. Most professional contractors will be covered between one million and two million dollars. This protects you in case the contractor causes damage to either your home or your neighbours’.

Your contractor should also have Workers Compensation for every person on the job. If they don’t, you could face a personal injury lawsuit if someone is injured while working on your property. Professional contractors will have a certificate confirming this is in place – make sure you see it before construction starts.

Your home is your most valuable asset. Talk to your BrokerLink broker to make sure it’s protected during renovations.