As homeowners, we agree that summer is the ideal time to cross home renovations off your to-do list. As insurance advisors, we ensure our clients know how to use their renovations to save money on their policy and keep themselves protected during the process. Although renovations can be stressful, adjusting your insurance needs doesn’t have to be with the help of a home insurance specialist. There are a few things to keep in mind, depending on the size and type of renovation.
Although routine maintenance, such as replacing your roof, seems pricey in terms of material and labour, a new roof can actually save you money on your home insurance. With new shingles, you’re less likely to have water damage which the Insurance Bureau of Canada estimates makes up the majority of the billion dollars in claims reported annually. Another way to cut back on water-related risk and add savings is adding a backflow prevention device or back up sump pump, if applicable to your specific situation.
Renovations that add value to your home, like a deck, patio or garden shed, should also be noted on your policy to protect your investment in the event of a total loss. Having detached structures, additions and upgrades listed on your policy ensures these assets are replaced to their full value if they are damaged or destroyed.
Aside from maintenance and aesthetics, we find that summer is the time of year when homeowners add more family-fun additions to their property. When homeowners budget for these entertainment pieces, such as a pool, hot tub, trampoline or fire pit, they often don’t consider how this addition may impact their premium. Although enjoyable, these additions can result in an increase in risk, from a liability perspective, so it is important to let your insurer know and they will make sure you are properly protected from any occurrence where you may be found legally liable for a third party’s injury at your home.
In the event of a larger renovation in which you are not able to live in your home while a contractor is working on it, it is crucial to advise your insurer because you may have some additional living expense coverage on your policy, or your insurer may have to alter your policy for the time of vacancy to ensure the policy has no gaps coverage.
Our advisors take the extra step to review our clients’ policies annually to make sure they are aware of any coverage changes and to ensure any updates from the year are properly noted on the policy. This also helps our clients remain claims-free, leading the client to greater savings in the long term.
At our agency, we take great pride in having what we call a claims guarantee. This gives our clients peace of mind, and the opportunity to speak to a licensed insurance representative or a claims adjuster to get advice or support on a potential situation, without the fear of immediately impacting their premium in a negative way. Call us today and we will be happy to guide you through the many options available to you.