You have finally made the big decision to renovate your home or embark on a new build. You have engaged a design/build company. The design plans have been drawn up and all of the necessary permits are in hand. You are ready to start construction. There is one thing, however, that many homeowners overlook and that is what, if any, insurance is needed during the building process. This blog will take a look at what you will need insurance-wise, as having the right coverage will help give you peace of mind throughout the duration of your project.
To start, any reputable contractor will need to provide two or three types of coverage during the building process. This will include Commercial General Liability Insurance, Worksafe BC and Course of Construction coverage.
- Commercial General Liability Insurance protects the contractor and you from things like injury or even mishaps on the job site.
- Worksafe BC (which is legally required on all job sites) covers the safety of all construction-related workers on-site, including both contractor and the sub-trades.
- Course of Construction Insurance covers the building for fire and damage throughout the build. Builders are required, as part of their warranty coverage on new homes, to provide this insurance for the duration of the new home project.
So the contractor only provides protection for the job site and the workers. This means that you, the homeowner, must provide further protection for yourself and your home during the construction process.
There is a difference between the insurance needed for new homes and that needed for renovations. As the homeowner, you will need to have Homeowner Insurance and if it is a renovation, you will need to provide your own Course of Construction Insurance.
- Homeowner Insurance - As a homeowner, you should already have this in place. This insurance covers your liability and the existing structure (any area that is not new or being renovated).
- Course of Construction Insurance - Homeowners are required to add this for a renovation to protect themselves.
It is also necessary to contact your insurance provider before any work gets started as any changes to the property could affect your coverage. Letting them know in advance will make sure you have all the relevant coverage and information you will need. It is also a great opportunity to clarify what exactly is, and is not, covered. With this taken care of beforehand, you will have one less thing to worry about during the building process.
As well, depending on what exactly you are having done, the replacement value of your home that was estimated previously could change. Renovations to your home can affect the overall value of the residence and change the replacement value in your coverage. So you will want to make sure that your home will be fully covered for the replacement value, once the work is completed.
Do you have a construction or renovation project in mind? Do you want to make your living space work better for your family? Are you planning a new build? George Martin of Well Balanced Designs is one of Vancouver’s leading Design-Build experts, with over 46 years of experience in construction and renovations. He is familiar with Vancouver’s building types and materials, from laneway homes and Yaletown condos to Westside single-family homes and larger homes on the North Shore. Schedule a call with George today to discuss your needs.
