Renovation Insurance: A Precaution Worth Taking for Your Property

When you're about to start home renovation work, getting insurance is essential to avoid major headaches if something goes wrong. In 2025, with rising material costs and an increase in damage linked to natural disasters, this precaution is more important than ever. So why is it so crucial? And how do you go about getting insurance? SoumissionRenovation.ca gives you the keys to securing foolproof coverage.

Insuring Your Remodeling Work: What You Need to Know as a Homeowner

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Your renovation project can quickly turn into a nightmare if an incident occurs and you—or your contractor—aren’t properly insured. Before any work begins, it's important to speak with your property and casualty insurance representative to explain your project. This conversation will confirm whether you’ll be properly covered throughout the duration of the work.

It’s important to note that if you’re doing the renovations yourself, your coverage may not apply. In general, insurance protection only takes effect if the work is carried out by a contractor holding a valid licence from the Régie du bâtiment du Québec (RBQ).

Renovation work comes with specific risks that require appropriate coverage. Whether you're making structural changes, installing technical systems, or doing finishing work, it’s critical to understand the construction-related risks so you can choose the right insurance. In addition, standards are constantly evolving, and some materials or techniques used in older homes may need to be updated or brought up to code, potentially leading to extra costs and risks that should be covered.

How does renovation insurance work?

Renovation insurance in Quebec is designed to protect homeowners from financial losses that can occur during renovation projects. Before starting any renovations, you must inform your insurer of the planned work. The insurer will review the nature and scope of your project to determine if your current policy needs to be adjusted or if additional coverage is required. If you hire a licensed contractor (RBQ), their own liability insurance will also help protect you in case of accidents or damages on the job site. If you do the work yourself, your coverage may be limited or even void, so it’s crucial to clarify this with your insurer before beginning.

During renovations, your insurance can cover you for incidents like property damage, theft of materials, or injuries to third parties. However, if your home is left unoccupied during major renovations, certain risks (like water damage or theft) may be excluded unless you notify your insurer and arrange for proper coverage. After the work is complete, you may need to update your policy if the renovations have increased your home’s value.

What does renovation insurance cover?

Renovation insurance typically covers:

• Liability for injuries or damages: If someone is injured or property is damaged during the renovation, liability coverage can protect you from legal and financial consequences. This is especially important if friends or family help with the work, or if the contractor’s insurance is insufficient.

• Damage to your property: This includes accidental damage caused by the renovations themselves, such as fire, water damage, or structural issues.

• Theft or loss of materials: Many policies can be extended to cover building materials and tools stored on-site during the project.

• Damage to neighboring properties: If your renovation work accidentally causes damage to a neighbor’s home, your insurance may respond.

• Coverage for unoccupied homes: If you must vacate your home during major renovations, you may need an endorsement to maintain coverage for certain risks.

It’s important to note that coverage may vary depending on the insurer and the type of work. Always review your policy and consult your insurer to ensure you have the right protection for your specific renovation project.

Finding the Right Insurance Plan for Your Renovation

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Each insurance policy has its own particularities that you need to understand. Carefully review your insurance policy, paying special attention to clauses related to whether the home will be occupied during the work, unexpected renovations, and any reassessment of your property’s value.

Don’t hesitate to talk to your insurer about available options, such as a vacancy permit, which allows you to maintain coverage if you temporarily move out of your home during renovations.

The Importance of Appropriate Insurance for Your Renovation Work

For any major renovation project, it’s a good idea to look into specific types of insurance, such as coverage for defects or flaws that affect the integrity or safety of your home. In Quebec, this type of insurance is not mandatory, but it is strongly recommended to protect your investment—especially for large-scale work. Without proper coverage, you expose yourself to significant financial risks and complications when it comes time to sell your property.

How to Write a Request Letter for an Insurance Certificate

Before beginning your renovations, it’s recommended to formalize your insurance request with your contractor or insurance provider. A clear and detailed letter will help you obtain the necessary certificates, particularly your contractor’s professional liability insurance certificate.

This step protects you in the event of a dispute and ensures that all parties involved are properly insured. Be sure to keep a copy of the letter and any documents you receive for your records.

Understanding the Cost of Paid Renovation Insurance

Insurance related to renovation work can represent a significant portion of your overall budget. In 2025, premiums vary depending on the type and scope of work, the value of the property, and the contractor’s profile.

It’s important to factor these costs into your project planning early on to avoid surprises. While these insurances come at a cost, they protect you from far more expensive consequences if a loss occurs.

How much does home renovation insurance cost?

Key Factors Influencing Cost

• Type and Scope of Work: Larger, structural renovations typically require more coverage and therefore cost more than minor cosmetic updates.

• Value of the Property: Higher-value homes or properties with unique features may have higher premiums.

• Contractor’s Profile: Using a licensed contractor with proper liability insurance can sometimes lower your premium, as it reduces risk for the insurer.

• Duration and Occupancy: If your home will be unoccupied during renovations, you may need a special endorsement, which can increase costs.

• Location: Areas with higher risks (e.g., prone to natural disasters) may see higher premiums.

Typical Premium Range

While the article does not provide specific dollar amounts, it notes that "insurance related to renovation work can represent a significant portion of your overall budget." In practice, here’s what you can expect in Quebec and similar markets in 2025:

• Minor Renovations: For small projects (e.g., kitchen or bathroom updates), a temporary policy or rider might cost between $100 and $500 for the duration of the work.

• Major Renovations: For larger projects (e.g., additions, structural changes), premiums can range from $500 to $2,500 or more, depending on the risks involved.

• Vacancy Endorsements: If your home is unoccupied, expect to pay an additional $100 to $500 for a vacancy permit or endorsement.

Verifying Your Renovation Contractor’s Coverage

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Beyond your own coverage, it’s crucial to make sure your contractor holds the necessary insurance, especially professional liability insurance. This covers damage caused on the worksite as well as defects that may appear after the work is completed.

Article 2120 of the Civil Code of Quebec requires the contractor to provide at least a one-year warranty against any defects that exist or are discovered after the work is completed. To benefit from this warranty, a written contract signed by both parties is essential.

Moreover, all contractors are required to file a licence bond with the Régie du bâtiment du Québec (RBQ), ensuring compensation in the event of poorly executed work.

In Conclusion

Home and renovation insurance remain a cornerstone of protecting your property, especially in light of rising risks and costs. Be sure to tailor your policy to match the nature of your work and compare offers regularly to keep your budget in check.

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FAQ

What insurance is mandatory for a home?

Home insurance is mandatory for tenants and strongly recommended for homeowners. For condo owners, liability coverage is required. If you're renovating, it’s also highly recommended to make sure your contractor has professional liability insurance.

What is the legal warranty for renovation work?

The legal warranty is an automatic protection under the law that applies after you pay for your renovation work. It requires the contractor to guarantee the work against any existing or discovered defects within one year of completion, at no extra cost to the client. This warranty covers compliance, safety, quality, durability, and hidden defects. For major defects affecting the structure or habitability of the home, there may be additional contractual or insurance protections, but there is no mandatory 10-year warranty in Quebec.

What insurance should I get for renovation work?

For renovation work, it’s recommended to:

• Ensure the contractor has professional liability insurance (mandatory for building professionals);

• Consider getting specific insurance coverage for defects or major faults, especially for large-scale projects that affect the building’s structure or integrity, even if this type of insurance isn’t required in Quebec.