A home renovation is one of the most rewarding investments you can make. You improve your space, increase your property value, and tailor your home to fit your lifestyle. But there is one step that many homeowners in Ontario overlook before starting.
Updating your home insurance.
It might feel like a small detail compared to choosing finishes or hiring contractors, but it plays a major role in protecting your investment. Renovations can affect your coverage in ways that are not always obvious, and failing to inform your insurer can lead to denied home insurance claims when you need support the most.
Here is what you should tell your insurer before starting a renovation, and why it matters.
Start With the Full Scope of Work
Your insurer needs a clear understanding of what you are planning.
Are you upgrading a kitchen, finishing a basement, or adding an extension? Even projects that seem straightforward can impact your house insurance coverage.
In Ontario, insurers assess risk based on the structure and value of your home. Structural changes, electrical upgrades, and plumbing work can all influence how your policy responds to potential claims.
Be specific about:
- The type of renovation
- The areas of the home being modified
- Whether the work is cosmetic or structural
This allows your insurer to determine if your current home insurance in Ontario still reflects your actual risk.
Clarify Your Living Situation During Renovation
Will you stay in your home during the renovation, or move out temporarily?
This is a critical factor for home insurance.
Many policies in Ontario have restrictions when a home is vacant or unoccupied for a certain period. If your home is left empty during renovations, some types of damage such as water leaks or vandalism may not be covered.
Let your insurer know:
- If the home will be occupied
- If you will be away and for how long
- If the property will be checked regularly
A simple update can prevent complications if you need to file home insurance claims during the project.
Share Details About Your Contractor
Who you hire matters just as much as what you build.
In Canada, and especially in Ontario, reputable contractors should carry liability insurance and, in many cases, have WSIB coverage. If a contractor is uninsured or underinsured, you as the homeowner may be exposed to liability.
Before work begins:
- Request proof of insurance from your contractor
- Confirm their coverage limits
- Verify WSIB status where applicable
Sharing this information with your insurer helps ensure your house insurance policy accounts for any third party risks involved in the renovation.
Report Any Increase in Home Value
Renovations often increase the rebuild cost of your home. This is one of the most common reasons homeowners end up underinsured.
Home insurance in Ontario is based on replacement cost, not market value. That means your policy should reflect how much it would cost to rebuild your home with similar materials and workmanship.
If you upgrade finishes, expand your home, or add custom features, your current coverage limit may no longer be sufficient.
Inform your insurer about:
- High value upgrades such as kitchens and bathrooms
- Additions or extra square footage
- Custom materials or built in features
Updating your coverage ensures you are not left covering the gap out of pocket after a loss.
Understand Temporary Risks During Construction
Renovation projects introduce risks that are not present in a finished home.
Construction areas may have exposed wiring, open walls, or unsecured entry points. Materials and tools may be stored on site. There is also increased activity from workers and deliveries.
These factors can increase the likelihood of:
- Theft
- Fire
- Water damage
- Accidental damage
Standard home insurance policies do not always account for these temporary conditions.
By informing your insurer in advance, you may be able to add temporary coverage or endorsements that protect you during the renovation phase.
Disclose Any New Liability Risks
Some renovations increase your long term liability exposure.
For example:
- Adding a rental unit
- Installing a pool or hot tub
- Building a deck or outdoor entertainment space
These changes can increase the risk of injury claims on your property.
Liability coverage is a core part of house insurance, and it is important to ensure your limits are still appropriate after the renovation.
If your project introduces new risks, your insurer can recommend adjustments to your policy so you remain protected.
Know What Can Impact Home Insurance Claims
One of the biggest misconceptions homeowners have is that all renovation related damage will be covered automatically.
In reality, failure to disclose changes can impact how home insurance claims are handled.
For example:
- A fire caused by unreported electrical work
- Water damage during a renovation in an unoccupied home
- Damage caused by an uninsured contractor
These situations can lead to partial coverage or even claim denial.
Being proactive and transparent with your insurer helps avoid these issues and ensures your home insurance works as expected.
Take the Opportunity to Review Your Policy
A renovation is the perfect time to step back and review your overall home insurance strategy.
Many homeowners in Ontario set their policy once and rarely revisit it. But your needs change over time, especially after upgrades.
Consider reviewing:
- Your coverage limits
- Your deductible
- Any exclusions in your policy
- Optional coverages that may now be relevant
This ensures your home insurance in Ontario remains aligned with your current situation.
Protect Your Investment Before You Start
A home renovation is a major investment, and your insurance should reflect that.
Taking a few minutes to update your insurer before starting the project can make a significant difference. It helps you avoid coverage gaps, ensures your house insurance is accurate, and gives you confidence throughout the renovation process.
If you are planning a renovation and are not sure where your coverage stands, now is the time to ask.
At Levitt Insurance, we work with homeowners across Ontario to review policies, identify risks, and make sure your home insurance is ready for real life changes.
Reach out today for a quote or a policy review and start your renovation knowing you are fully protected.
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