How Your Home Renovations Can Void Your Home Insurance Policy


1/2/2020 9:17 AM

Having a home insurance plan is crucial to ensure your home and important belongings are protected in the event of damage or theft. Home renovations may not be a necessity for all homeowners but could be a sensible investment for homeowners that want to update or completely restore their property. You may not need to update your home insurance policy for minor renovations such as changing the bathroom cabinets, however, for larger renovation projects, it’s important to look into your home insurance policy and whether your project could void it.

Home insurance policies have what’s known as a “material change” which applies to a change to the risk that is material and with the insured homeowner’s knowledge. To avoid the stress of worrying about voiding your home insurance, check out what not to do below.

Beginning Renovations Without Informing Insurer

Major home renovations must be shared with insurance companies prior to any action taking place. This is because home renovations can impact the value of a property and increase it. Inform your insurance broker about your plans to renovate to ensure that you are completely covered. If they are not told of the renovations, the insurance policy may be voided following completion of renovations because the coverage premium you’re paying was based on the home’s value before any renovations. Your current home’s insurance policy may not even include damages that occur during construction.

Being Absent From the Home

This is certainly not common knowledge, but it’s of paramount importance for you to know. Being away from your home for extended periods may have a negative effect on your home insurance policy. Neglect to the property and potential damage is more likely to occur when the homeowner is away. For example, if pipes freeze or burst, then the home could become flooded without your realization for days causing significant damage to the home. If you travel frequently, it may be in your best interest to acquire a more comprehensive home insurance policy from your Newfoundland insurance company to cover you or have someone check on your home frequently while you’re away.

Poor Home Maintenance

Even prior to any home renovations, if your home has not been properly maintained, you are at risk of voiding your home insurance policy. Home insurance companies expect homeowners to maintain a certain amount of upkeep on the property to keep it in acceptable condition. When the home is neglected, it can lose it’s value and become less desirable for potential buyers if the home goes on the market. Insurance companies can also deny claims if there is damage to the property which occurred as a result of neglect.

Crosbie Job Insurance has the best Newfoundland home insurance policies to fit our clients’ needs. We offer three types of home insurance from Basic, to Broad Form and Comprehensive to ensure you’re covered and protected from theft and damage to your home. Fill out our Protection Savings Quote Form to find your insurance options today at https://www.crosbiejob.ca/get-a-quote!

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