Contact Your Broker Before Starting Home Renovations

June 1, 2024

Why You Should Contact Your Broker Before Starting Home Renovations

Home renovations can be an exciting project that transforms your living space and increases the value of your property. Whether you’re planning to update your kitchen, add a new bathroom, or build an extension, it’s crucial to consider the insurance implications of your home renovations. Before you pick up that hammer or hire a contractor, contacting your insurance broker should be a top priority. Here’s why:

Protect Your Investment

Home renovations often involve significant financial investment. By informing your broker about your plans, you can ensure that your insurance policy reflects the increased value of your home. For instance, if you add a new room or upgrade your kitchen with high-end appliances, the value of your home will increase. Failing to update your insurance policy accordingly could leave you underinsured, meaning you might not receive full compensation in the event of a claim.

Avoid Coverage Gaps

Certain types of renovations can create coverage gaps in your existing insurance policy. For example, major structural changes or the installation of new systems like plumbing or electrical wiring might not be covered under your current policy. Your broker can help you adjust your policy to cover these changes, ensuring you’re protected during and after the renovation process.

Understand Liability Risks

Home renovations can introduce new liability risks. Contractors and workers will be on your property, increasing the potential for accidents and injuries. If a worker is injured while working on your home, you could be held liable. Discussing your renovation plans with your broker can help you understand these risks and ensure you have adequate liability coverage. This might involve increasing your liability limits or adding a specific endorsement to your policy.

Protect Your Contractors

Some renos require the use of specialized contractors who might bring their own equipment and tools. It’s essential to ensure that these items are covered while on your property. Your broker can advise on whether your policy covers contractors’ equipment or if additional coverage is needed. Moreover, verifying that your contractors have a Certificate of Insurance is crucial to avoid any disputes in case of damage or loss.

Renovation-Specific Coverage

Certain renovations might require specialized insurance coverage. For instance, if you’re undertaking a large-scale project like adding an extension or a swimming pool, you might need a builder’s risk policy. This type of coverage protects against damage to the building materials and work in progress. Your broker can guide you on whether this additional coverage is necessary for your specific project.

Avoid Premium Surprises

Renovations can sometimes lead to increased insurance premiums. However, being proactive and discussing your plans with your broker can help you manage these costs. Your broker can provide insights into how different types of renovations might impact your premiums and offer advice on ways to mitigate any increases. For example, installing safety features like a home security system or smoke detectors during your renovation might help offset premium increases.

Stay Compliant with Policy Terms

Home insurance policies often contain specific terms and conditions related to renovations. For instance, some policies might require you to notify your insurer before starting any major renos. Failing to comply with these terms could result in your policy being voided.

Protecting Your Home During Renovations

Renovations can make your home more vulnerable to damage and theft. Construction work might involve opening walls or removing parts of the roof, exposing your home to the elements. Additionally, expensive tools and materials on site can attract thieves. Your broker can provide advice on how to protect your home during the renovation period. This might include adding temporary coverage for building materials or increasing your home’s security measures.

Ultimately, contacting your broker before starting home renovations provides peace of mind. Knowing that your home is adequately insured during and after the renovation process allows you to focus on the exciting aspects of your project without worrying about potential risks and liabilities. Your broker is there to help you navigate the complexities of home insurance, ensuring you have the right coverage in place for your unique needs.

For personalized advice and to ensure your home is fully protected during renovations, contact Cornerstone Insurance Brokers today. Our expert team is here to help you navigate your insurance needs every step of the way.

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