Home Renovations & Home Insurance Ontario | Bevan Insurance Blog
Thinking of renovating your home? Be sure to do some research before diving in and spending your hard-earned money.
The Globe and Mail has reported on those renovations that will not add value to your home, they also warn that there is often little opportunity to recover the cost when it is time to sell. Their list includes the following: swimming pools, overbuilding for the neighbourhood, extensive landscaping, high-end upgrades, wall-to-wall carpeting and invisible improvements such as plumbing and HVAC.
According to Mike Holmes of HGTV, kitchen and bathroom improvements increase the value of your house more than most renovations and offer the highest average return on investments.
The Canadian Home Builders’ Association (CHBA) have outlined a series of what they refer to as ‘golden rules’ when deciding to improve your home. You should know what you want, set a realistic budget, and plan for the long term, among others. Most importantly, you should protect yourself with insurance, liability insurance in particular.
Romana King of Money Sense advises you to be aware that there is a clause in a large number of Home Insurance policies that eliminates your coverage and protections should you undertake a home renovation. Such a clause would give your insurance company the legal right to deny a claim, should one be necessary. The best thing you can do to help yourself is to check with a representative to find out if your home improvement will change your coverage and to ask about Builder’s Risk Insurance while you’re at it.
In general, it is best to notify your insurance company about any changes to your property so that you can feel secure that you are covered throughout the renovation and into your enjoyment of the finished product.
We can help you understand the bigger picture. Give us a call at Bevan Insurance today at 1-800-667-9810 (705-726-3381 in Barrie) to talk about your plans and how they can affect your Home Insurance coverage.
This article includes information which is copied from official works and was not produced in affiliation with, or with the endorsement of any source utilized.
The Globe and Mail article can be read in full at www.theglobeandmail.com/real-estate/mortgages-and-rates/six-renovations-that-dont-add-value-to-your-home/article11914824/ or follow them on Twitter @globeandmail.
Romana King’s full entire commentary can be found at www.moneysense.ca/spend/real-estate/renovations/renovation-could-void-your-home-insurance/.
