Renovating? Talk to your Merit Insurance Broker

Planning a Home Renovation? Be sure you AND your contractor have proper insurance coverage.

If only buying your dream home was as easy as clicking red ruby slippers together.  But in today’s financial climate, more Canadians are opting to renovate their existing home rather than buy.

While shopping for the perfect dimmer switch or bathroom tile, insurance is often an overlooked step in the renovation process. Many people assume their current policy extends coverage to any changes made to the home. In Ontario, only 6% of homeowners looked into house insurance policies prior to renovating.

The consequences of inadequate coverage can be costly. Here are some things to consider when planning your next renovation:

1. Size of the renovation: Whether you are completing a simple DIY project you found on Pinterest or remodeling the kitchen, you should consult with your insurance provider before starting the project. For larger projects, you may require an addition to your policy to ensure you are protected. Allow the professionals to evaluate the coverage required for your project- no matter how big or small.
2. Failure to disclose on any major home projects can make your current policy null and void: Renovations are hard to predict. Most insurance policies include a clause that a renovation project will invalidate your home insurance if you fail to notify your insurer.
3. You must contact your insurer once the renovation is complete: Whether it is additional square footage or upgraded features, the goal with any renovation is to increase the value of your home. As a result, your policy must be re-evaluated accordingly.
4. If hiring a contractor, ensure they have proper liability coverage. You should make sure the contractor’s liability insurance is adequate and current. Generally speaking, the contractor’s insurance and your own homeowners’ insurance will together provide good coverage through the renovation project.

Contractors are also vulnerable to a variety of risks when taking on home improvement projects. The following are important policies for contractors to evaluate while considering business insurance:

• Protection against personal injury: Separate from worker’s compensation which covers employee’s wages, personal injury policies can be used to assist in medical expenses, legal fees, and court-awarded compensations for those injured on a job site.
• Damage Claims: Legal and repair costs are covered should the customer’s property incur damage during construction.
• Equipment/Tools Insurance: Policies designed to fund replacement costs should any tools be damaged, or to cover equipment rental fees.

Whether it is for the homeowner to protect their asset, or a business to safeguard themselves from liabilities, insurance is a necessary step towards a successful renovation.

There is no place like home…make sure yours is protected today.

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Merit Insurance has you covered with a variety of affordable options to meet your specific needs. Call your Merit broker for a quote today at 1-800-563-3383 or contact us online.  Your Merit insurance specialist will find ALL the right insurance products, with affordable rates and deductible options, that meet your needs.