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A home renovation can be a great way to make your space more functional, more comfortable, and more valuable. From kitchen upgrades and basement projects to exterior improvements and backyard features, renovations often represent a major investment in your property.

Whether you’re updating a family home in Newfoundland and Labrador, making improvements to a property in Nova Scotia, or renovating elsewhere in Atlantic Canada, it’s worth taking a close look at your insurance coverage before work gets underway.

Why Insurance Matters Before You Renovate

When you improve your home, you may also be increasing what it would cost to repair or rebuild it after a loss. If your policy has not been updated to reflect those changes, your coverage may no longer match your home’s true value.
On the other hand, some renovations can reduce risk. Replacing an aging roof, updating old wiring, or modernizing plumbing may make your home safer and could even have a positive impact on your premium.
No matter the size of the project, it is smart to review your insurance before the renovation begins.

Key Insurance Issues to Consider

• Your home may be worth more after the work is done: Large-scale updates like additions, renovated kitchens or bathrooms, or a newly finished basement can all increase your home’s replacement cost. If the amount of insurance on your home stays the same, you may not have enough coverage after the renovation is complete.
• Renovations can create extra liability exposure: Construction zones come with added hazards. If someone is injured while work is being done on your property, you will want to know your liability coverage is adequate. This becomes even more important if you are handling some of the work yourself or having friends or family pitch in.
• Moving out temporarily can affect your policy: Some renovations are disruptive enough that homeowners choose to live elsewhere until the project is finished. In some cases, that can mean the home is considered vacant. A vacant property may not be covered the same way under a standard home policy, so your insurer should be made aware in advance.
• Additional construction coverage may be needed: For major renovation work, Builder’s Risk coverage — sometimes called Course of Construction insurance — may be worth discussing. This type of policy can help protect against things like stolen materials, vandalism, or damage during the building process.
• Your contractor’s insurance matters too: Before hiring anyone, confirm that your contractor carries proper liability insurance and any required workplace coverage. It is also a good idea to keep copies of contracts, warranties, receipts, and guarantees for your records.
• A home inventory can make claims easier: Before the renovation starts, take time to document your home and belongings with photos or video. Having an up-to-date record of your contents can make the claims process much smoother if something is damaged or goes missing during the project.

Renovations That Can Change Your Insurance Needs

Many common upgrades can affect your policy or premium, including:

• building an addition
• replacing the roof
• installing a pool or upgrading outdoor living space
• adding a home office or running a business from home
• renovating a kitchen or bathroom
• buying new appliances or high-value contents
• updating plumbing, wiring, heating, or cooling systems
• finishing or waterproofing the basement
• adding or removing a wood stove or fireplace

Every project is different, so the insurance impact will depend on the work being done and how extensive the renovation is.

Start Your Project with Confidence

Renovating your home is a big undertaking, and the last thing you want is to discover a coverage gap after something goes wrong. Reviewing your home, contents, and liability coverage before construction begins can help protect you from unexpected costs.

If you are planning a renovation, speak with your advisor at Munn Insurance before work starts so your coverage keeps pace with your plans.