Are Renovations Covered by Home Insurance?

We often have numerous questions when it comes to getting home insurance. A common question is whether renovations are covered by home insurance. You would be happy to know that renovations are, in general, covered by home insurance companies. However, the limit of renovations covered might differ from one company to another. In general, huge upgrades might not be covered by insurance companies.

The best way to find answers to the question will be to enter a detailed discussion with your home insurance company before starting any renovation project. It is important to verify that your home renovation insurance is covered, or else you might lose your home insurance.

It is possible to change your coverage limits to ensure that your renovation project is also insured. Alberta home insurance brokers offer great deals on home insurance with maximum coverage.

How to start with a renovation project for your home

The general order of things must include you having a discussion with your home insurance company on the coverage limit offered by your home insurance plan. Renovation home insurance will make sure that your renovation projects take place smoothly.

The main factors that influence the coverage limits of your home insurance include:

Giving your home insurance company a general idea about the type of renovation that is going to take place is essential so that they can advise you regarding the home insurance plan for your home. It is always possible to run into a renovation mishap when it is advisable to increase the coverage limits to avail the home insurance and minimize home rebuilding expenses as much as possible. 

Moreover, someone may get hurt during the renovation project. You definitely do not want to lose your home renovation insurance coverage in such a case. It is a smart idea to take photos before, during, and after any renovation project so that there is a record of the things taking place during the ongoing project. 

You must also not mishap any receipts, contracts, etc and always keep them photocopied. When you get a green signal from your home insurance company, you can proceed with the renovation. 

What are the changes you should make to your home insurance?

In cases where the home insurance renovation coverage does not cover your planned renovation project, consider updating your home insurance policy to get a more inclusive policy. It is best to take advice from the home insurance company to know which updates to make to your existing home insurance policy. Usually, the home insurance agent will recommend changes depending on the type of renovation project you have in mind.

Some changes that might be introduced to your home insurance policy are:

Increase the insurance amount

You can increase the amount of insurance to include the rebuilding of your home. This will mean a higher price for the insurance policy. The insurance company might ask you to forward your records, receipts, forms, etc., so that they can make the necessary changes.

Add riders

Increasing the coverage limits during the renovation project. These include liability coverage that is helpful if someone is injured during the renovation process. If you are planning to take up a DIY renovation project, then liability coverage is of utmost importance. You can increase the medical protection covered in your home insurance policy which means getting paid the amount you spend on medicine after the accident/injury. 

Moreover, taking responsibility for an injured person, even if it’s paying their medical bills, will prevent you from getting sued later.

Post renovation additions

Increasing the coverage limits after the renovation project. Sometimes, you might go overboard with your renovations, leading to adding certain features that were not initially planned. Adding luxury features like a swimming pool or a jacuzzi will mean you must increase the liability coverage forever. Therefore, you might also consider entering an umbrella policy with these features covered.

Insurance for expensive possessions

Increasing coverage due to an increase in personal possessions like expensive items. These may be an expensive set of books, an expensive set of arts or décor items, etc. Adding such valuable items to your collection might need to be given additional coverage in the form of floaters of endorsements.

Dwelling policy

You can include dwelling under the renovation clause to your home insurance policy to get the building materials insured so that you are insured in cases of damage or theft. The foundation collapse clause is also included in the dwelling under renovation to take care of any mishaps that might happen when you live in the property undergoing renovation.

Vacant home insurance

Consider including vacant home insurance in your existing home insurance policy. This is valid when you stay at a different location for more than 60 days during the renovation project. This safeguards against any damage or mishap that might occur without your supervision and be found on the site later. This is important because accidents often get unnoticed for a while before you come across them.

Check the contractor’s background

It is important to check that the renovation contractors hired by you are insured. This is because adequate insurance will prevent them from suing you in cases of accidents on the site during the ongoing renovation. 

You can always ask them to produce proper documents and verify whether their insurance is adequate, and then enter a contract with them. This way, you will be safeguarded from a lot of renovation mishaps that might otherwise affect the renovation project and make you lose your home insurance.

Home renovation insurance — Conclusion

Now that you are aware of the different ways you can make your home insurance policy more inclusive of your renovation project, you can make an informed decision. It is essential to be aware of the renovation project and ensure that you do not change the type of renovation during the process. 

Also, make sure to discuss well with your home insurance company to minimize your expenses and keep your home insurance valid.