If you are ready for some changes to your home then you are probably considering some renovations to your home. When you are thinking about renovating, you are probably excited and have been making lots of decisions about where you want this, how you want that, and what additions you want. Renovating is a way of adjusting your home to your specific tastes.
It is not uncommon to purchase a home and settle for a few things that are off or not there. Many people will forego searching for years for their perfect home and settle on their next to perfect home, why? Because they are able to renovate their home and make it perfect.
Renovating your home is a big process and you should be aware of the different affects it can have on your insurance policy before performing the work.
Renovating your home can actually impact your insurance policy on your home. Even though you do not think about it, you are responsible for knowing about it. You want to make sure that you first and foremost notify your insurance company about your plans to renovate before doing so. This will ensure that you are covered throughout the process and you do not lose your insurance coverage.
Since renovations to the home are not considered normal use of the home, you may find that your insurance policy does not cover certain renovations or even procedures to be performed. This is important to know because you are responsible for knowing what is covered and what is not covered.
One thing people must understand is that your insurance policy does not substitute as a warranty or guarantee that the work will be performed correctly. You should also make sure that you let your insurance company know who will be performing the work on your home because using certain contractors or dong the work yourself may mean that you or others are not covered.
Renovations to your Canadian home can have huge impacts on your insurance policy. Consider these impacts:
Renovations can impact your home by increasing the value of it. Since your home insurance policy is designed to cover the amount of your home in the event something happens, your policy may no longer cover the value of your home. Since you will need to increase the value of your home on your policy, your policy premium may increase as well.
Another impact you need to be advised of and watch out for is whether or not the workers performing the work on your home will be covered by your policy. Sometimes they are not and if any workers become injured on your property, your insurance company will not cover them.
In other situations, your insurance policy may become void if you are not able to occupy the home while the renovations are being performed. Depending on the type of policy you have, you may be required to constantly stay on the property while the home is insured. Insurance companies do this because they believe an occupied home will deter damage or even someone from breaking in.
Something else you want to look into is whether or not your insurance policy will cover everything you come across in your home. If extensive work is being done, the renovation crew may warn you that the wiring or building materials are hazardous. This can void your insurance policy and cause you to not be covered anymore.
It is important to make sure that you are always checking with your insurance company before you decide to do any work on your home. This will ensure that you are properly covered. If your insurance policy does expire while work is being performed on your home, you may find yourself in trouble and you risk the chances of someone getting injured.
In addition to this, you will want to make sure that the contractor you choose is also licensed and covered by his own insurance. Their insurance will cover any types of damage that occurs to them or the home.
Always keep your insurance company advised of what is going on and speak with them before even beginning the work on your home so you fully understand what is covered and what is not covered.