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Many Canadians unaware of a home renovation’s impact on insurance policy


April 29, 2013   by Canadian Underwriter


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As the days get longer and weather warms, Canadians may be in the beginning stages of renovation projects, but results from a recent survey suggest many homeowners aren’t aware of how their upgrades can impact their insurance policies.

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According to the results from a TD Insurance survey, only 6% of Canadians checked their home insurance policy to ensure they were covered during upgrades, and only 16% asked their insurer if they needed an update following their last renovation. The online survey of 2,748 Canadians was completed in February by Environics Research.

Albertans were least likely to consult their insurer about upgrades, with only 13% reporting asking if they need a policy update, while 17% of British Columbians asked about it, according to the survey results.

More than half (56%) of homeowners also incorrectly believed they will always be covered by their original policy while their home is being renovated, according to TD. Nearly a quarter (24%) were also unaware that moving out for more than 30 days during renovations requires a policy update, the results suggest.

Respondents were also not always informed of liability issues related to renovation projects, with 41% incorrectly believing they will not be liable if a contractor is hurt on their property while working, TD noted.

And, while 79% of homeowners said they would likely make upgrades that could help them save on premiums in the long term, many weren’t aware of what kinds of changes would have an impact, TD said. For example, 53% didn’t know that installing granite countertops or expensive appliances could increase their premiums, the company said.

“Upgrades requiring extensive work, such as adding an extension to your home, may require you to change your entire policy to a building under construction,” Dave Minor, a vice president at TD Insurance advised consumers in a statement.

“And, if you’re not living in your home during renovations, it becomes an easier target for thieves and undetected water damage, which is why your insurer may require you to secure a vacancy permit if you move out for more than a month,” he added.

The Insurance Bureau of Canada website also includes information for homeowners about when they may need a policy update.


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