Considering renovations: A checklist for homeowners

August 7th, 2014 by admin

Home renovations to improve your kitchen, basement, outdoor area and many other spaces affect your home's value. Therefore it is important to have the necessary insurance protection before you conduct these upgrades. Here are five steps you should take before undertaking renovations, compiled from the Insurance Bureau of Canada:

1.) Notify your insurance provider before you begin any renovations. This step is especially critical because, during renovations, your home becomes a construction site, with more people who have access and greater potential for theft and water damage. It is important to check that your policy will cover the renovation period.

2.) Know that renovations affect your home's replacement value. Secondly, homeowners should be aware that improvements to their homes, in turn, affect their premiums and coverage. Therefore, be sure to report any renovations to your insurance provider. 

3.) Understand that vacant homes can invalidate your policy. Given that vacant homes are at a greater risk for break-ins, it is important to request a vacancy permit. Such a permit will cover you while you're away from the home. 

4.) Do research on contractors you want to hire. Check their credentials, qualifications and obtain proof of insurance. They should have full liability coverage, as well as workers' compensation coverage and insurance certificates valid for the entire duration of your home renovations. 

5.) Get a verbal agreement and do not pay cash. Finally, make sure that you get a written contract that contains estimates of the work and materials you want, start and completion dates, in addition to itemized costs, total price and mode of payment.

For answers related to all of your home and auto insurance needs, contact the experts at Fundy Mutual. One of our experienced home insurance brokers will be happy to help you.