Thinking about rolling up your sleeves to make improvements to your home? Whether the job is minor or an overhaul, as a homeowner, you have to think about who, how, and the expense of the project. Another key element some homeowners forget is how this change will impact your home insurance. Below are some important things to keep in mind while planning your next home renovation.

Is a permit needed?

Based on where you live, building permits for particular projects (or even home inspections) are necessary to obtain from your local government before work begins. Property owners have a responsibility to have the correct permits in hand, whether you are DIYing the reno or having a professional handle the job. If a contractor says they will take care of obtaining the permits or inspections needed for the project for you, make a point to have this part of your contract with them. Not sure which types of renovations need building permits where you live? Visit your municipality’s website or contact their office to find the answers you need.

Some jobs need the hand of a qualified professional

Some home renovation projects seem simple (and less expensive) to tackle ourselves, but there are particular jobs that should be handled by a qualified professional. Did you know renovations such as cabinet installation, countertop replacement, and intricate tilework can actually decrease the value of your home if not done correctly? Spend a little more money by hiring qualified tradespeople who can assist you in choosing quality materials and properly install them in your home.

Larger projects that affect the “bones” of your home, such as structural, electrical, plumbing, gas, and heating or air conditioning, should always be completed by licensed professionals who work under today’s safety standards. This is especially the case where electrical work is concerned. Incidents like fires, electrical shock, or other serious injuries could occur if minor electrical repairs are not done correctly.

Unexpected costs are to be expected

The budget of your home renovation should take into account all costs, including any unexpected ones that could happen during your project. Your budget should be flexible enough to be able to handle these unforeseeable costs. Some unexpected costs could occur when property owners decide to change their minds about the project or having to bring your home up to code. Homeowners should consider allocating an additional 10% to 20% of their total budget to cushion the blow of any unanticipated costs of a renovation project.

Speak with your insurance broker before you begin your project

It is important for property owners to know which types of home projects can affect their insurance premiums, or potentially, compromise their coverage (such as a structural change). Another thing to keep in mind is if you plan on moving out while this project is happening. There may be special changes in your coverage you need to be aware of ahead of your renovation.

Speaking with your licensed home insurance broker can help you ensure you have the right coverage before work begins on your home improvements. If you have recently completed a home improvement project, speak with your broker to see if your upgrades are covered by your existing home insurance policy.

Whether your home renovation project is a small or a grand undertaking, having these tips on hand will make this process smoother to complete. Do you have more questions about how a home renovation will affect your policy? Contact us for more details!

Sources

https://showmethegreen.ca/how-to-guides/how-to-get-a-building-permit-for-your-home-improvements
https://www.chba.ca/CHBA/Renovating/What_Type_of_Contractor_Do_You_Need.aspx 
https://www.hgtv.com/design/remodel/interior-remodel/hidden-costs-of-remodeling-your-home 
https://blog.otcinsurance.ca/blog/making-changes-to-your-home-here-are-10-your-insurance-company-needs-to-know-about