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April 1, 2024

Renovating your home can be an exciting prospect for you and your family as you envision how you will enjoy your new space when all is said and done. But before you get too far into your project, you need to make sure that your investment is protected and that you aren’t doing anything that could jeopardize your insurance coverage – or possibly even void it.  

Here are six ways that home renovation can void an insurance policy and what you need to know:  

The renovations caused damaged  

In some cases, damage may happen during renovations that will seriously affect your home and you may even need to file a claim. If it is found that renovations caused these damages, you may not be covered  

Damage due to contractor error during renovations  

There are some areas homeowners don’t have a lot of knowledge in and they will hire out the work to contractors.  If the contractor makes an error that causes major damage to your home, your own insurance may not cover it. This is why it’s important to find a contractor with their own insurance and who is bonded so if there’s a mistake, you will still be able to file a claim so that the damage can be repaired.  

New living space, or value of renovations, is not covered 

When you initially got home insurance, one of the questions the broker would have asked was what the value of your home is plus the contents. Now, when you do the renovation chances are the value of your home is going to go up. Now you will need to update your insurance policy to make sure your new living space is covered for its true value.   

An uninsured contractor gets injured on your property 

If you hire a contractor who doesn’t have their own insurance, you could be liable if they get hurt while working on your home. Take the time to find a reputable contractor who is bonded and insured so that if they do get hurt while working on your home, you don’t have to rely on your insurance to pay out the claim.  

If you can’t live in your home during renovations 

Some renovations will make it very inconvenient to live in your home, so you may decide to live elsewhere until it’s finished. This means your home is being left unattended for that length of time and this could void your insurance policy. If you will be living somewhere else for an extended period of time during your renovations, you will need to let your insurance company know so that your policy can be adjusted accordingly.  

When renovations are extensive  

If you are making any structural changes to your home – like moving load bearing walls or building an addition – you may risk voiding your insurance policy. Changing the structure of your home can mean catastrophic damage if the work is not done properly. For extensive renovations, it is always best to discuss your policy with your broker and any changes you may need to make before work commences.  

Contact ICD Insurance today 

If you are thinking of making home renovations and have questions about how this might affect your home insurance policy, call us today to speak to a broker.