Worst case scenario? Your renovations could void your insurance. Your home insurance policy has a clause called "Material Change" that reads similar to the following:
"Any change material to the risk and within the control and knowledge of the Insured voids the contract as to the part affected thereby, unless the change is promptly notified in writing to the Insurer or the local agent."
This means that if your renovation results in Material Change to your property and you don't alert your insurance broker, you may be voiding your policy.
Here are the top 6 ways that renovations can void your home insurance:
Informing your broker of your plans to renovate your home will give them the opportunity to explain potentional pitfalls to you. They will be able to provide you with insight to help stay within your policy terms and minimize your risk during and after your renovations.
If you are hiring a contractor to perform your renovations, always ensure that they are properly insured. If they make mistakes or cause damage to your property this insurance should ensure that they can rectify the problems.
Your contractor should have a certificate of insurance for your property. Asking them to see this will ensure that claims can be properly covered by their insurance rather than yours.
Renovating your home could significantly increase the value of your home and if you're adding value you're gonna want to make sure that value is protected. If you're planning on, in the middle of or have completed a renovation without speaking to your insurance broker, call them today to ensure that you're always fully protected.