Whether you are a Homeowner, Real Estate Investor or Commercial Property Owner, renovations, upgrades and construction will become a part of your life. If you are planning to engage in a renovation or change to your home or building here are three questions to ask yourself with respect to your Property Insurance Program.
- Are you moving out during your renovation?
- Do I need a Permit?
- Am I hiring a Contractor?
If you answered YES to any of the questions above, please add “Review Insurance Coverage!” to your renovation to-do list. You should plan to speak with your Insurance Broker or Insurance Company well in advance of starting your project.
The reason is simple.
You may not be covered by your current insurance policy if you are making “significant” changes to your property or will not be in the space for an extended period of time.
Your Property Insurance Policy is a contract that provides various types of coverage based on an expected type of use. A Homeowner Policy is based on a building valuation and a use for liability that anticipates the owner to be residing at the house on a regular basis.
If you are doing a renovation that involves an addition, extension or major interior upgrade, or you will be living elsewhere for 30 days or longer, your current policy may not cover you, and may in fact, automatically lapse per the terms of the contract.
If the work requires a permit or you are hiring a contractor, it is important to ensure that you are protected from any liability arising from the renovation. You should deal with a reputable contractor who can provide you with proof of insurance for their work (Business Liability Insurance) and their people (WSIB) to minimize the risk to you as the Property Owner.
If you have questions, feel free to speak with Chris Case, a Licensed Insurance Broker at Case Insurance to learn your options.