renovations

Renovating Your Home? When to Let Your Insurance Broker Know

Anthea Personal Property Insurance

Home Renovation Insurance

Whenever we write a home insurance policy, we ask you a number of questions to assist you in determining the cost to rebuild your dwelling. If you are planning to undergo renovations that will increase the value of your home, you should let us know so your insurance coverage can keep pace with the improvements.

When To Tell Your Insurance Company

Minor Upgrades

Not all renovations increase the value of your home. For example, if you replace your 30 year-old windows or kitchen with the same grade and quality as before, this is considered maintenance and does not need to be reported. However, if you upgrade your windows significantly or replace veneer cabinets and laminate counter tops with solid wood designer cabinets and granite tops, you will have increased your home’s value and will need to change your coverage level. Below, Scott McGillvray from the TV Show Income Properties talks about adding value to your home.

Major Renovations

Of course, if your renovation involves major structural changes to your home – such as a room addition, new garage (attached or detached), swimming pool, fireplace, sun room, or if you complete an unfinished basement – we need to know before you start. The amount you spend on renovations before your insurance provider requires notification varies depending on your policy. As a rule of thumb, if you spend $5,000 or more on improvements, you should let us know.

If in doubt, call us. Happy renovating!

(Copyright: Staying in Touch 2005 – Volume Fifteen, Number One)