Ask an Insurance Expert: How do renovation plans affect insurance coverage?

March 2nd, 2015

Q. How do renovation plans affect insurance coverage?


Depending on the type of renovation and how much it will cost when complete will determine whether the person needs a course of construction policy during the renovation. But because the renovation is a material change in risk before you start you need to contact your broker and they will then advise the insurance company of the risk. It will be up to the insurance company at that time to decide whether they want to charge a premium.


Many policies will contain a provision allowing the insured to do renovations as long as they do not materially affect the structure. Given how much of a grey area that is, we always encourage our clients to contact us for a review. We will typically notify the underwriters so it’s on file, and if necessary get the client a COC policy. We also remind them and assist them with confirming that their contractors are properly insured with the right limits and coverages.

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