Updating your home means updating your insurance policy
When you add an extension to your home, install new security devices or replace your weathered roof, your insurance policy may also need a makeover.
A recent poll of almost 3,000 Canadians has revealed that very few home owners think to contact their insurance provider when they plan to make changes that may affect their home insurance policy. Results of the poll showed that only 16% of respondents contacted their insurer to see if the existing policy needed revisions following renovations.
Not only can unreported renovations invalidate your policy, certain improvements can actually decrease the cost of your premium, such as updates to electrical fixtures. It is also prudent to consult your insurance professional regarding what your insurance covers during a renovation. If a contractor is hurt on your property, you could be liable for medical bills, loss of wages and other damages.
According to Pete Karageorgos of the Insurance Bureau of Canada, changes should be disclosed as soon as possible, and many Canadians aren't fully aware of when they would need to make changes to their policy. "If your home isn't insured to value," Karageorgos says, " ... you may not have enough coverage and you won't be completely protected."