Page 26 - Real Estate Now Jan-Feb 2022

Can Housing Upgrades

Affect Your Insurance?

Ainsley Smith courtesy Realtor.ca
here’s a lot to consider when you decide to renovate. Aside from choosing the right tile for your new backsplash
or the perfect shade of paint, you have to think about insurance. Though home insurance isn’t mandatory in
TCanada, most mortgage lenders require it before financing, and it can help protect your property and home
contents against damages.
Canada’s home renovation sector is now an $80-billion market with a recent survey indicating that 27% of Canadian
homeowners have renovated during the pandemic, and another 20% plan on tackling renovations in the near future.
While some renovations can be costly, they can help increase the value of a home. Regardless of the size of your
renovation, it’s always important to consider how any improvement will affect your home insurance so you can
ensure you don’t run into any implications or added costs.

What types of renovations affect your home insurance?
Before you make any home improvements, there are a few things you’ll need to consider. Namely, planning your reno,
deciding on a budget, and making sure you’re insured, because some upgrades will have varying effects.
We spoke to Matthew Johnson, customer care manager with Sonnet Insurance, who said any changes that would
impact the cost or the likelihood of a claim would typically impact your insurance rates.
This includes renovations such as:
• changes to square footage;
• updates to your roofing;

26 | REAL ESTATE NOW | LB@LoraleeBurns.com