Planning to renovate your home? You should be aware of the big bad wolf or he may turn around and bite you. Your insurance company is a wolf in sheep’s clothing and unless you keep the sheep happy, it will shed its wool to reveal the wolf’s teeth.
One thing many homeowners do not know is that their insurance coverage will be affected during renovations and not having proper coverage can be extremely costly in the case of a problem that necessitates a claim. On the positive side, advising your insurer of improvements that reduce risk of damage in the property can earn you a reduction in premiums. These things might include:
Updating plumbing or electricity systems
- Installing an alarm system
- Replacing an old hot water tank
- Changing the heating system
- Replacing the roof
Failure to clear your renovation plans with your insurance company however, before embarking on the renovation journey may eventually be very painful. These are just a few of the issues that can be raised by your insurer in order to refuse a renovation related claim:
- The value of your property will change and the details of your coverage should be updated to reflect the new or soon to be finished project;
- You may require different or additional coverage during the renovations such as adjusted civil liability coverage if workers will be on site;
- Your insurer may require that certain work be performed by certified professionals (plumbers, electricians…);
- A claim may be refused if you have hired your own workers rather than using a general contractor and have not confirmed to building code laws and regulations.
Renovations can be exciting and nobody wants to have their exciting plans ruined by an accident or mishap. If ever there is an issue, you will not regret having disclosed your plans and having clearance from your insurance company. As the saying goes:
‘’An ounce of prevention is worth a pound of cure.’’