Why You Should Notify Your Insurance Broker About Renovations

Home renovations can be exciting, transforming your living space and often increasing the value of your property. However, what many homeowners overlook is the impact these changes can have on their insurance coverage. Keeping your broker informed about significant renovations is a critical step in protecting both your home and your investment.

Imagine you’ve just completed a beautiful basement renovation, turning it into a home theater or an extra bedroom. This upgrade has likely increased the value of your property, but if your insurance policy hasn’t been updated, it might not reflect this change. In the unfortunate event of a fire or flood, you could find yourself underinsured, leaving you with significant out-of-pocket expenses to rebuild what you’ve just created.

Similarly, some renovations introduce new risks that could impact your liability coverage. Adding features like a swimming pool or hot tub, for example, can increase the likelihood of accidents. Informing your broker ensures that your policy adjusts to cover these potential risks, protecting you if the unexpected happens.

Even during the renovation process itself, there are potential pitfalls. Many insurance policies include exclusions for construction-related risks unless the insurer is informed. Imagine materials for your renovation are stolen or a contractor accidentally damages your property. Without updating your policy beforehand, you might not be covered for these incidents.

Key Renovations to Discuss with Your Broker

1. Adding or removing major structures, such as a garage or sunroom.
2. Significant upgrades like a new kitchen, bathroom, or basement renovation.
3. Installing new systems, including plumbing, electrical, or HVAC.
4. Adding a swimming pool, hot tub, or other features that increase liability risk.
5. Modifications that change the use of your property, such as adding a rental suite.

At Munn Insurance, we understand that your home is more than just a structure—it’s your sanctuary. Don’t let a simple oversight put your investment at risk. Reach out to us before you start your next project, and we’ll ensure your coverage evolves with your home.

Brian King (BCom, MBA) Chief Executive Officer, Munn Insurance