Hello everyone! Summer has arrived, and it’s renovation season, so I want to remind you of a few simple but important points that you shouldn’t overlook if you’re planning a renovation.
❗️First of all, be sure to inform your insurance company about it – no matter how extensive the work is. In many cases, this can lead to significant savings, especially on insurance premiums.
These premiums can be lowered if you replace your water heater, install an alarm system, or set up surveillance cameras. The savings can be even greater if you re-roof, replace electrical wiring or windows, change the heating system, upgrade plumbing, or add a backflow valve. The logic is clear – all these improvements reduce the risks of related insurance claims.
Of course, if you’re expanding your home – building a new floor, adding a garage or terrace, etc. – you should expect an increase in insurance costs.
The same goes for condos: insurance will cost more with new exotic wood floors, new faucets, or expensive cabinets.
Regardless of whether you expect an increase or decrease in cost, it’s best to inform the insurance company of the nature of the work before it begins. If a claim arises as a result of the renovations (fire, flooding neighbors in the condo, theft, vandalism), you will be covered, even if the damage was your fault.
By the way, municipal property assessment does not affect the insurer’s calculation of reconstruction costs. Instead, the insurer considers the year of construction, major repairs, and the size of the building, as well as the cost of labor, materials, and inflation.
Here’s what else I can advise:
✔︎ If you’re doing the renovation yourself, find out if the insurance covers injuries to family members or workers.
✔︎ If you install a pool or a fireplace without notifying your insurer, they may deny you compensation in the event of a claim.
✔︎ Buying an apartment? Find out the cost of renovations, even if they were done by the previous owner. Otherwise, the insurer may cover damages only up to the original value.
All these not-so-obvious but extremely important details will save you from unnecessary risks during your renovations.
If you need recommendations, I work with verified and reliable contractors and insurance companies. Feel free to reach out; I’d be happy to help.
If you need advice related to buying or selling real estate, contact me.
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Best regards,
Denis (514) 577-0787
Denis Kornienko Real Estate Broker REMAX
