Research from TD Insurance has found that the majority of homeowners are not considering the insurance implications of their renovations. Only 6 percent checked their policy to ensure they were covered during the upgrades and just 16 percent asked their insurer if their policy needed an update following their last renovation.
Here are three common home insurance myths.
Myth #1: “My home will be covered under my original insurance policy during renovations.”
Fifty-six percent of homeowners incorrectly believe that they will always be covered by their original home insurance policy while their home is being renovated.
Upgrades requiring extensive work, such as adding an addition, may require homeowners to change their entire policy to a building under construction. Further if the home needs to be vacated for a period of more than a month, the insurer may require a vacancy permit.
Myth #2: “If my contractor is injured on my property while working, his insurance will cover it.”
Contractors are trained professionals, but accidents can and do happen. Forty-one percent of homeowners incorrectly believe that if a contractor is hurt on their property while working, they will not be liable. In fact the opposite is true and the liability would be all out of their own pocket.
Myth #3: “Renovations don’t affect my insurance coverage.”
Many homeowners don’t know which renovations can decrease premiums as well as potentially increase premiums. Things such as installing security devices, replacing your weathered roof, or upgrading the electrical system, could lower your premiums. On the other hand, granite counter tops, hardwood floors, expensive appliances as well as other creature comforts could have an impact on the value of your home and your insurance policy should reflect these added items. So if your policy stated that you insured carpet and you actually had hardwood, guess what they would replace it with if you had a loss.
If you’re in the Greater Edmonton area and are looking for a contractor for you renovation project, visit our website at www.nordalta.com/contact/ to find information on how to contact us. We’d be happy to speak to you about what we can do to get the ball rolling on your next home or office project. You can also leave comments with us at firstname.lastname@example.org.
Michael Breault is a project coordinator for Nord Alta Construction. You can find the company website at www.nordalta.com. You can also find Michael and Nord Atla Construction on facebook at www.facebook.com/NordAltaConstruction, on twitter at www.twitter.com/Nordalta, and on LinkedIn.
Robert Breault is the president and owner of Nord Alta Construction. You can find the company website at www.nordalta.com. You can also find Robert and Nord Alta Construction on facebook at www.facebook.com/NordAltaContruction and on LinkedIn.