Renovating your home? Learn more about insurance during a home renovation.

A renovation can be a great way to help improve curb appeal, keep your space up-to-date, and transform your house into a home. It's also an important time to review your insurance coverage to ensure your home and belongings are protected from loss or damage both during and after the renovation. Whether you're doing small touch-ups or giving your house a complete overhaul, there's more than just paint colours and finishings to consider when it comes to prepping for a renovation project. If you're going to be renovating your home, you've come to the right place. In the article below, we've answered some frequently asked questions about home insurance and renovations.

Does home insurance cover renovations?

Home insurance typically covers the structure of your home, your personal belongings, and liability. However, it may not necessarily provide the coverage you need during a home renovation. In fact, whether you're doing the work yourself or are hiring an experienced contractor, you should contact your insurance company before any work begins on your home. That way, your insurance company can help you:

  • Get the coverage you need to reflect the updates to your home.
  • Determine whether you need additional home insurance coverage during your renovation.
  • Review your policy and highlight what is and isn't covered.

Learn how you could boost your home insurance coverage with TD Insurance.

Do home renovations affect your insurance?

Generally, the cost of home insurance will change following a renovation. While most people expect that a renovation could increase the cost of their insurance, many don't realize that some renovations have the potential to decrease their insurance premium.

Renovations that can lower your home insurance premium

  • New roof: A roof replacement could lower the cost of your insurance, as there's less chance for leaks and therefore, a reduced risk of a home insurance claim.
  • Updated electrical: Updating the wiring in your home to be up to the current building code could lower your home insurance premium.
  • Updated plumbing: Updating your plumbing to the current building code with new materials could lower your insurance costs. In addition, installing a backwater valve can reduce the risk of the sewer backing up into your basement, helping you to remain claims free.
  • Security cameras and alarm systems: Making your home more secure by installing security cameras and connected fire or burglar alarms can help reduce the cost of your insurance.

Renovations that can increase your home insurance premium:

  • Basement apartment: Since this renovation typically increases the value of your home, it also increases the cost to repair or replace your home due to a covered claim. That extra cost will increase how much you pay for home insurance.
  • Home extension: An extension that increases the square footage of your home increases the cost to repair or replace your home due to a covered claim, which in turn will increase the cost of your home insurance.

Do you need additional insurance for a home renovation?

Whether or not you need additional insurance for your home renovation typically depends on what you're planning for your home. It's important to notify your insurance company prior to starting your renovation to ensure you've got the coverage you need to reflect the exciting changes to your home . Keep in mind that do-it-yourself projects can have as much of an impact on your insurance as work done by contractors.

A TD Insurance Advisor can help you determine the right coverage for you during your home renovation. TD Insurance customer? Login to MyInsurance or the TD Insurance Mobile App to review your policy.

What does renovation insurance cover?

While there's no specific coverage called 'Renovation Insurance,' you may need additional coverage during a renovation that your homeowner's policy doesn't provide. This coverage could be available in a policy specialized to insure properties under renovation. Typically, the coverage that's right for your renovation depends on your needs and the scope of your renovation.

Consider the following before starting your next renovation project:

  • Will your home be unoccupied for an extended period during the renovation?
  • Does your renovation include building materials like wood, paint, and tools, that weren't accounted for when you first drafted your home insurance policy?
  • Does your existing home insurance policy limit or exclude things like theft, water damage, or vandalism during a renovation, including do-it-yourself jobs?

Your insurer can help you determine the insurance coverage that best fits your needs.

What else should I consider when planning a home reno?

Before renovating your house, you'll want to ensure you have the necessary permits for the project - even if you're leaving the upgrades to someone else. Generally, a contractor can get permits on your behalf, but you should have this expectation included in the contract details so it's clear that securing the appropriate permits is their responsibility. Don't forget to keep records and receipts throughout your home renovation to help you keep track of important project dates and costs.

How can I ensure I have the right home insurance coverage after a renovation?

It's important to connect with your insurance company to confirm you've got the right coverage amount for your newly renovated home. Your insurer will be able to help you determine whether your policy reflects the new value of your home and its contents. If your renovation has increased your home's replacement value, failing to update your coverage could leave your home underinsured.

Replacement value refers to the estimated cost to restore your home without deduction for depreciation. Your home could be underinsured if your insurance policy wouldn't be able to cover the cost to fully repair or rebuild your home using new, similar-quality materials following a covered claim. Without appropriate coverage, you could be responsible for paying the difference between your policy amount and the actual cost to repair or rebuild your home if it's damaged by fire, high winds, or another covered event.

TD Insurance customer? Contact us before beginning a home renovation.

Renovations can sometimes be a tricky process, but we want to help you understand how changes to your home can impact your insurance. Check your policy before your next home project on MyInsurance, or contact us if you have questions about home insurance and renovations.

Prefer to chat online? No problem. We offer live chat support on our website, with TD Insurance Advisors ready to help you.

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The content on this page is for general information purposes only and does not constitute legal advice. Coverages described herein may be subject to additional eligibility criteria, limitations and exclusions. In the event you make a claim, potential indemnification is also subject to the receivability of the claim and the type of coverage you bought.

In the case of conflict between the content on this page and your policy wordings, your policy wordings shall take precedence. Please speak to an Advisor or consult your policy wordings for further details.