Do You Need Construction and Renovation Insurance?

When planning a renovation project, you want to make sure that you are protected so that the house of your dreams does not turn into a nightmare. Here’s what you need to know about construction and renovation insurance.

From the choice of the entrepreneur to the limits of your home insurance policy, the key lies in the understanding of construction and renovation insurance. Make sure you get standard renovations that will not be a burden if something goes wrong.

Do your homework

Before hiring a friend of a friend to do your home renovations, ask to see their insurance documents and their business number.

    i) Hiring officially licensed contractors is the best way to ensure that you are protected from injury or accident at work.

Call your insurance company

You must let your insurance company know in advance what you plan to do to ensure that you are always covered during the construction phase.

    i) Because renovations can increase the value of your home, your insurance company could ask for work receipts to prove what was done (and by a licensed contractor).

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Read the fine print

Some insurance policies will be invalidated if you do not occupy your home during the renovations.

    i) Instead of just staying at the hotel a few weeks, assuming you are still covered, you should contact your insurance company to discuss options.

    ii) Usually, you can apply for a vacation permit to cover the period during which you will not be there, to make sure your home is still protected.

Prepare for the unexpected

If you live in an old house, think of surprises that entrepreneurs will find once work has begun.

    i) Older building materials that are no longer standard will need to be removed and replaced. This can affect your insurance policy.

    ii) Keep your broker informed of what is happening and cooperate with your insurers to get the coverage you need.

Doing construction and renovation work for your home is a way of making it your own. With your family or growing needs, your home may need to expand as well. But understanding your construction and renovation insurance will help you make sure that no matter what changes you make, or to whom you have them made, you are protected from financial responsibility.