The short answer to this question is yes, your home renovation will affect your home insurance policy. What’s unclear is to what extent it will affect your home insurance premium. Insurance policies normally cover your property in the event of unexpected incidents. Renovations are planned projects and as such do not count as unexpected occurrences. Typically insurance policies don’t cover home renovations for this reason.
That’s why you may need to request for additional coverage for times when you’re renovating. That way you can be properly covered in the event that an accident occurs during the project, which you can be found liable for. Insurance for renovation work can also cover any items lost during the course of the renovation. Burglary is a higher risk during these times because parts of your home may be exposed during renovation.
Informing your insurance provider of your renovation work is also crucial to maintaining your coverage. This is because during the course of the project, you may find out that you have some outdated utilities that could make you lose coverage if not addressed and updated. This is primarily an issue for older homes and you will need to inform your renovation contractors about these needed changes so that they can plan for them accordingly.
Aside from that, a home renovation can change the value of the premium you have to pay. An increase in property value brought upon by a renovation on your Toronto home will increase its replacement value and likewise increase the premium you have to pay as well. It’s important then to inform your insurance provider of the completion of the project so that they can assess your home and determine the proper adjustments to your premium. Failing to do so in a timely manner may cause you to lose coverage.