Planning home renovations? Don't overlook your insurance
- Planning ahead
- Property insurance
- Major renovations can increase your home's replacement value, so it's important to update your homeowner insurance policy before work begins to make sure your coverage keeps pace.
- Always ask contractors for proof of liability insurance and workers' compensation coverage before hiring them, since accidents and property damage can happen even with experienced professionals on the job.
- If your home will be vacant during the renovation, letting your insurer know is essential as many policies have conditions around unoccupied homes that could affect your coverage.
Home renovations can increase your home's comfort, functionality and value. Whether you're updating a bathroom, finishing a basement, adding a deck or tackling a major addition, it's important to think beyond the design plans and budget. A few simple insurance considerations before work begins can help protect both your home and your finances.
Tell your insurance company about major renovations
Not every home improvement project requires an insurance update, but significant renovations often do. Structural changes, additions, finished basements, upgraded kitchens or other projects that increase your home's replacement value should be reflected in your home insurance policy. If your home is worth more after the renovation, you'll want to make sure your coverage keeps pace.
Choose insured contractors
Before hiring a contractor, ask for proof of liability insurance and, where applicable, workers' compensation coverage. Insurance helps protect everyone if property is damaged or someone is injured while the work is underway. It's also wise to confirm whether the contractor is properly licensed for the work being performed.
Review your liability coverage
Even when professionals are doing the work, accidents can happen. Reviewing your personal liability coverage before renovations begin can provide peace of mind if an unexpected incident results in injury or property damage.
Secure tools and building materials
Construction sites can attract theft. Keep expensive tools, equipment and building materials locked away, especially overnight. Temporary fencing, security cameras, good lighting and locking sheds or garages can all help reduce the risk of theft or vandalism.
Will your home be vacant?
If you'll be living elsewhere during extensive renovations, let your insurance company know. Many home insurance policies contain conditions related to vacant or unoccupied homes, and failing to report an extended absence could affect your coverage. Your insurer can explain whether additional protection or a policy adjustment is needed.
Protect yourself before you build
Every renovation project is unique, and so are the insurance considerations that come with it. Taking a few minutes to review your policy before construction begins can help make sure you're properly protected throughout the project and once the work is complete.