Renovations and insurance: What coverage do you have?

Why is liability insurance essential during renovations?

Your liability insurance protects you and your family in case of accidents during renovation work. Even if your relatives are helping, you could be held responsible if someone gets injured or causes damage or loss to others.

Real-life example: Your brother-in-law falls and becomes disabled while helping you redo the roof. He could sue you. Your liability insurance could cover the cost of compensation.

Good to know: Your home insurance contract probably already includes this coverage. It’s a good idea to confirm that your protection is sufficient before taking out your tools.

If you hire a general or specialized contractor, make sure they have their own professional liability insurance coverage. This ensures you are protected if damage occurs to your home or a neighbour’s. The same protection applies if someone has an accident during the project.

Is my home covered if I’m away during renovations?

Not completely. Some home insurance protections may be limited if you leave your home for several days or weeks for major renovations. Policies often include insurance exclusions for:

• Water damage
• Theft
• Vandalism
• Broken windows

These exclusions generally don’t apply to minor renovations, such as roof repairs, adding a garage, or finishing a basement. However, fire damage remains covered even in your absence.

How to adjust your insurance policy after renovations

It’s important to notify your insurer after renovations such as:

• Adding a room or garage
• Installing a pool or spa
• Finishing a basement
• Replacing the roof
• Upgrading the heating system or water heater
• Replacing the electrical panel
• Installing a security system

Some renovations increase your home’s rebuilding value and can increase insurance risks. For example, installing a pool requires a specific endorsement, which could raise your insurance premium.

Conversely, some home improvement projects reduce the risk of home insurance claims, such as fire, water damage, or theft, and may even lower your premium:

• Removing a wood stove
• Replacing the roof covering
• Installing a monitored security system

What are the risks of not declaring home renovations?

Failing to inform your insurer can have serious consequences:

• In the event of a covered claim, reimbursement could be based on your home’s value before renovations.
• Certain risks, like adding a pool or fireplace, could be excluded or receive reduced compensation.

Declaring your renovations ensures your coverage matches the real value and risks of your home.

Does home insurance cover damage caused during renovations?

No. Generally, damage you cause during renovations is not covered by home insurance. If you drill into a pipe or break a window while handling materials, this is not covered. These damages are considered part of the renovation work. Your liability insurance may apply if the damage affects others, or the contractor’s insurance may cover it.

Is accident insurance useful during renovations?

Yes. Accident insurance can provide financial protection to your family in case of injury or accidental death on the renovation site. It covers:

• Professional rehabilitation costs
• Vehicle or home adaptation for a wheelchair
• Certain compensation for fractures

Good to know: This coverage does not replace disability or salary insurance but can make a real difference in the event of an accident.

Safety precautions to reduce renovation accidents

In addition to verifying your accident insurance, you can reduce renovation risks by following these safety measures:

• Protect yourself: safety glasses, gloves, helmet, harness, earplugs, mask, and remove jewelry and rings.
• Use the right tools and equipment, and ensure adequate lighting.
• Stay vigilant: avoid alcohol, read labels and instructions, store products and tools out of children’s reach.
• Hire a professional if necessary.

These simple steps reduce the risk of accidents during renovations.

Checks to make before starting renovation work

Before taking out your tools:

1. Verify your liability and accident insurance.
2. Inform your insurer of the renovation’s scope.
3. Confirm exclusions and coverage for unoccupied homes.
4. Adjust your home insurance policy and rebuilding value if necessary.

A few minutes of preparation can help avoid problems and protect your home, personal property, and family during renovations with the right types of coverage.