As renovation season heats up in Canada, brokers and carriers are wise to remind homeowners to update their policies – before hammers start swinging.
Craig Richardson, vice-president of claims operations at TD Insurance, says the insurance company should be notified even before a contractor begins working on the renovations.
Insurers should also communicate the opportunity for savings; Richardson stressed that renovations to make improvements that can help reduce home insurance premiums. A sewer backup valve or an alarm system can be installed along with other major works, which will help save on labour costs.
“If you're already in the process of doing renovations, it may be cheaper to do it while work is ongoing,” Richardson said.
Even if there’s no major work being done, it’s better if home insurance policies are reviewed annually just to make sure they match the homeowner’s needs.
According to insurance broker Matthew Carr, standard insurance usually includes common risks such as fire, as well as others that are specifically named on the policy. Other options can include a wider range of risks, subject to certain exclusions.
“What we're doing from an insurance standpoint is evaluating the house for a reconstruction purpose – what would it cost in the event of a loss to rebuild that home,” said Carr, president of Carr & Co., an insurance broker in Ottawa.
Because home insurance isn’t regulated like auto insurance, it’s important to compare prices, as well as the coverage offered, to make sure homeowners get the best value for their money.
Carr also recommended that individuals with valuable art, jewellery, or expensive sports equipment might want to consider having extra coverage for the precious items.
“It is always a good idea to have a clear understanding of the items you have in your home,” Richardson added. “The last thing you want to find out is you don't have the coverage you need.”
