Did You Tell Your Broker About Your Home Reno?
Many Canadians made major renovations to their homes during the pandemic. About 14% did so on impulse, but may not have told their insurers about these material changes.
Policies often stipulate a homeowner must tell their broker or insurer about any remodelling plans once those renovations exceed $5000, in order to maintain coverage provisions. Finishing a basement, removing structural supports, or building an addition can change the home’s rebuilding value which is key in determining adequate insurance limits.
According to a study, approximately 11% of Canadians made home renovations in 2021, and 26% of those renovations surpassed the $5000 disclosure bar stated on many policies. The report also indicated that Ontarians spent the most on renovations in the past year: almost double that of people in other provinces.
If you have recently completed home renovations, or plan to, contact you broker to review how this will impact your insurance coverage, so that any necessary adjustments can be made.