Why Take Out Home Insurance Before Starting Renovation Work

Are you in the early stages of a renovation project? Among the things to plan during the preparation period is taking out home insurance. If you don’t already have a home insurance policy for your house, don’t delay in getting one. The agreement must be finalized before the work begins so that protection is in effect.

Why is it so important to have valid home insurance during the work? That’s what we’ll explain in the following paragraphs.

Reasons to Take Out Home Insurance During Renovation Work

First, because renovation work creates more situations where damage to your property could occur. There are greater chances of structural problems, fires, water damage, and material breakage. Renovation sites involve various safety issues, so all parties involved must be well protected from the start of the project.

Home Insurance During Renovation Work: What to Know

First, you must ensure that the insurance policy you select provides coverage for renovation work. Each type of contract may include different clauses depending on the insurance company you deal with, the laws of the country where you live, and the extent of the coverage offered.

Do you already have a home insurance contract for the address where the renovations are being done? If so, contact your insurer quickly to find out what type of coverage is offered during the work. You’ll also be able to know if there are exclusions or additional coverage needed for more complete protection.

In the other scenario, where you don’t currently have a valid home insurance policy, that means you’ll need to contact insurance companies to see what types of policies are available. You can compare the different contracts, their clauses, the premiums to be paid, and the amounts offered as coverage in case of a problem.

What Type of Insurance Coverage Is Available for Renovations?

If you live in Canada, and more specifically in Quebec, you can contact your bank or a private insurance group to compare the different home insurance products available. You’ll certainly find a policy that meets your needs. When you speak to an insurance broker, you must mention that you’re planning to carry out renovation work, as they will help you choose the right product that offers coverage for this type of project.

For our readers living in France, Groupama’s comprehensive home insurance offers lifetime global coverage. You can choose the level of protection that suits you, while specifying that work is planned on your home.

Renovations: What Damages Can Be Covered by Home Insurance?

A good insurance contract for a renovation project should include the following clauses:

• Civil liability for injuries and damages: in case someone is injured on site, or in case of damage caused by the work.

• Property damage: accidental damage caused by the renovation work, such as fires, water damage, or structural problems.

• Theft or loss of materials: if the home is less secure during the work, the risk of theft (tools, personal belongings) can increase.

• Damage to neighbouring properties: sometimes work carried out on a private property causes damage to neighbouring residences. The insurance contract should provide coverage in case of this type of issue.

• Coverage for an unoccupied home: in some cases, the work is carried out in a home that is not occupied, either because the occupants must temporarily move out or because the work is being done in preparation for an upcoming move. Make sure your insurance covers this type of situation.

Do Renovation Contractors Need to Take Out Insurance?

Absolutely. If the contractors you’re dealing with haven’t taken out an insurance policy, it will be difficult to obtain compensation in case of a problem. In Quebec, contractors who hold an R.B.Q. licence benefit from a bond and liability coverage for such situations. In France, certified renovation contractors are required to take out insurance (ten-year, professional liability, builder’s risk).

In Conclusion

When it comes time to plan a renovation project and calculate the estimated budget, the insurance policy should not be overlooked. It should never be considered an optional step, as the risks are too high in case of a problem. Take the time to choose your insurance policy, making sure to include the necessary clauses for renovation work. Then, make sure all parties involved in the project have also taken out insurance.

FAQ on insurance in case of problems during renovation work

Renovation work: how do I file an insurance claim?

You must contact your insurer as quickly as possible to inform them of the situation. The agent you’re dealing with will guide you through the next steps. If you must carry out emergency repairs, keep all your receipts, as well as the damaged goods. Take plenty of photos and gather all the documents you think will be useful to complete the claim. These will be used when evaluating the amount offered as coverage.

My contractor caused damage to my home: what should I do?

In Quebec, you must contact the Régie du bâtiment du Québec to inform them of the situation. If the contractor has a valid licence, you’ll have recourse against them. They are legally required to have insurance, so you can claim compensation. The Office de la protection du consommateur also receives complaints against faulty contractors. Finally, if your contractor is a member of a professional order, you can file a complaint with that organization.

In France, you should try to communicate with the contractor, seek advice from a mediator, or send a formal notice to assert your rights.

How can I reduce the cost of my home insurance?

Everyone wants to reduce their monthly expenses, and many people may be tempted to choose a cheaper insurance policy. However, this is not an area where you should go for the lowest option, especially if you’re doing renovation work, which temporarily increases property risks.

The best way to find an affordable insurance policy is to compare the plans available with the same insurer, and then with different companies. Make sure the clauses are equivalent. Speak to an insurance broker, as they can guide you toward the plan that best suits your budget and needs.