Spring in Ontario is the perfect season for home renovations – whether you’re upgrading your furnace to withstand the harsh winters or adding a new bathroom to accommodate growing family needs. But before you start tearing down walls or installing that backyard pool, it’s essential to consider how your renovation plans might impact your home insurance. Some renovations could lower your premiums, while others could increase your coverage needs or risk exposure. In this blog we’ll walk you through some common home renovations and how they might affect your insurance coverage.

1. New Roof

Insurance Impact: Lower Premiums

Ontario’s winter’s can be harsh, with heavy snowfalls, ice, and freezing temperatures. A new roof can help protect your home from these weather-related risks, reducing the chances of damage caused by ice dams, leaks, or snow buildup. Replacing your roof may also lower your insurance premiums, as your insurer will consider your home less risky to insure. Be sure to notify your broker if you’re replacing your roof so they can adjust your coverage and premiums accordingly.

2. Added Square Footage (New Bedrooms, Bathrooms, or Living Spaces)

Insurance Impact: Adjusting Coverage to Reflect Increase Value

Renovations like expanding your home’s square footage with new rooms or finished basements increase your home’s overall value. In Ontario, home values can vary significantly by region, and insurers need to now if your property value has increased. Make sure to update your policy to reflect the new value, as an underinsured home could leave you financially vulnerable in the event of a loss.

3. Pool or Hot Tub

Insurance Impact: Increase Liability Exposure

Although we all appreciate a pool when the hot summer months roll around, and a hot tub during the winter. However, adding a pool or hot tub to your property could increase your liability risk. Pools are considered an “attractive nuisance,” meaning they could attract children or uninvited guests, posing a potential safety hazard. Ontario has regulations around pool enclosures, fencing and safety measures – make sure you’re in compliance with these rules, and always inform your broker when adding a pool. They’ll help adjust your policy to ensure you’re covered for any liability risks associated with the pool.

4. Alarm System (Including Smart Home Security Features)

Insurance Impact: Potential Discount on Premiums

Installing a smart home security system is not just a smart choice for peace of mind – it can also help you lower your home insurance premiums. In Ontario, many insurers offer discounts for homes equipped with monitored security systems, such as cameras, motion sensors, and smart locks. These systems reduce the risk of theft, break-ins or vandalism, and could even lower your premiums. Be sure to notify your broker about your security upgrades so they can apply any applicable discounts.

5. Finished Basement

Insurance Impact: Coverage for Water Damage and Flooding Risks

Finishing your basement can add valuable living space, but it’s important to consider the increased risk of water damage – especially in areas prone to flooding. In recent years, Ontario has experienced significant rainfall and flooding, particularly in areas like Ottawa and the GTA. If you’ve finished your basement, it’s crucial to ensure your policy covers flooding or water damage risks. Adding a sump pump or backwater valve could even earn you discounts on your premium. Make sure your insurance policy is updated to reflect the added value of your basement and any new water protection measures you’ve put in place.

Home renovations are a fantastic way to increase the value of your property and enhance your living space. But in Ontario, they also require careful attention to your insurance coverage. Whether you’re replacing a roof, adding a pool or finishing your basement, updating your policy ensures your home and investment are fully protected. At McFarlan Rowlands, we understand the unique needs of Ontario homeowners, and we’re here to guide you through the process of adjusting your coverage.

Planning a renovation this year?

Let’s make sure your home is protected with the right insurance coverage. Contact McFarlan Rowlands today to review your policy and ensure your renovation is covered every step of the way.