Renovating changes the risk profile of your home. Tools, stacked materials, open walls, and hired trades raise the chance of accidental damage, theft, fire, or injury. Your standard home insurance policy protects your dwelling and belongings under normal circumstances, but renovation work often introduces coverage gaps or additional requirements. Not telling your insurer about a major renovation or hiring contractors without adequate insurance can lead to denied claims when something goes wrong. The practical rule is simple: call your insurer early and get clear guidance on what needs to change. The Financial Consumer Agency of Canada recommends understanding your home insurance coverage and limits before making changes.
What a typical home insurance policy covers and doesn’t cover
Most standard home insurance policies protect you from fire, theft, vandalism, and certain types of accidental damage. They may also cover additional living expenses if your home becomes uninhabitable. But policies often exclude or limit coverage for risks that arise during construction, for example, loss of materials stored off-site, damage caused by contractors’ work, or liability for injuries to workers on site. Insurance providers typically expect homeowners to disclose major renovations and may require a temporary endorsement or separate coverage while the work is in progress. For authoritative consumer guidance, see the Insurance Bureau of Canada for general home insurance basics. IBC
Tell your insurer early: what to say and ask.
Before you start the demo, tell your insurer:
- The scope of work (example: “full kitchen rework, move plumbing, replace cabinets, install new gas cooktop”).
- The expected start and end dates.
- Whether structural changes, gas, or electrical upgrades are involved.
- Whether contractors will be on site full time, and if you’ll be living in the home during construction.
Questions to ask your broker or insurer:
- Do I need a renovation endorsement, course-of-construction coverage, or temporary builder’s risk?
- Will my liability limits cover contractor-related damage or third-party injury?
- Does my policy exclude coverage for certain trades or types of work?
- Will premiums change, or will additional endorsements be required?
Insurers often treat major renovations like a change in occupancy or risk class; clear documentation avoids nasty surprises later. Consumer guidance from the Financial Consumer Agency of Canada stresses the importance of checking policy details and limits before you change your home. Canada
Contractor insurance and WCB (what you must verify)
One of the biggest homeowner mistakes is assuming the contractor’s insurance covers everything. You must verify:
- Commercial General Liability (CGL): This protects against third-party bodily injury and property damage caused by the contractor’s work. Ask to see a current Certificate of Insurance naming you (the homeowner) as an interested party where appropriate.
- Wrap-up or Builders’ Risk: For larger projects, contractors or owners sometimes arrange builders’ risk (course-of-construction) insurance to protect materials, work-in-progress, and temporary structures. Confirm who is responsible for that coverage.
- Workers’ Compensation (WCB) coverage: In Alberta, tradespeople should be registered with WCB or carry equivalent coverage. If a worker is injured and not covered by WCB, the homeowner can face liability or be pressured into settlements. Alberta government guidance explicitly recommends asking for the contractor’s WCB number and insurance certificates. Alberta.ca
Ask the contractor for written proof, a certificate from their insurer that shows policy numbers, limits, and expiry dates. If they refuse, treat that as a major red flag.
Permit, inspection, and building code implications
Permits and inspections are not only about safety and legal compliance; they also affect insurance, too. Covering up work before passing the required rough-in inspections may create a claim problem if damage happens to that hidden work later. The City of Edmonton requires permits for many renovations and has clear checklists for basement development and other work; keep those permit documents in your project folder. edmonton.ca
Two practical points:
- Inspections as proof: Inspection sign-offs document that trade work was completed to code before being covered, which is frequently requested during a later insurance claim.
- Unauthorized work risks: Work done without permits or that fails inspection can reduce or void coverage for related damage. Always follow local permit procedures and have your contractor coordinate submissions.
Common renovation scenarios and the insurance impact
Minor cosmetic upgrades (low risk)
If you’re replacing finishes, new paint, counters, or flooring with no structural, electrical, or plumbing changes, you usually only need to notify your insurer. Coverage generally continues, but confirm you haven’t accidentally created gaps (e.g., leaving doors open to the house for long periods may increase theft risk).
Structural changes and additions (higher risk)
Opening load-bearing walls or adding square footage changes replacement cost and structural risk. Insurers may require updated dwelling coverage and endorsements because replacement cost and liability exposure increase.
Mechanical upgrades and gas work (special attention)
Adding a gas line, boiler, or other combustion appliance raises fire and carbon-monoxide risks. Insurers commonly require work to be performed by licensed trades, with permits and inspection sign-offs. Keep appliance installation manuals and proof of compliance.
Major projects where builder’s risk matters
For large renovations or multi-trade projects, builders’ risk or course-of-construction insurance protects materials and partially completed work. Decide in your contract who is responsible for arranging and paying for this coverage.
For each scenario, document permits, inspection receipts, and contractor insurance. These are the basic building blocks for any later claim.
Risk reduction practices every homeowner should use
- Hire licensed, insured professionals. Ask for references and verify insurance and WCB coverage. Alberta Resources recommends checking both insurance certificates and WCB registration. Alberta.ca
- Get it in writing. Your contract should list scope, payment schedule, insurance expectations, holdback provisions under the Builders’ Lien Act, and warranty terms. The Government of Alberta recommends an itemized contract. Alberta.ca
- Secure the site. Lock tools and materials overnight; theft is a real risk during long projects. Take photos of the site before and during work for claims evidence.
- Maintain document trail. Keep all invoices, certificates, permits, inspection receipts, and photo logs in one folder. Insurers expect neat records for a smooth claims process.
- Consider temporary additional coverage. Ask your broker about an endorsement or temporary policy for the renovation period.
These steps don’t eliminate risk, but they make a claim far easier to support.
Real Edmonton examples (what went right and wrong)
Example — What went wrong (avoid this): An Edmonton homeowner hired a contractor who declined to show proof of CGL or WCB coverage. A subcontractor slipped on an unsecured stair and was injured. The homeowner faced a complicated liability claim and months of legal back-and-forth because the injured worker was not covered by WCB. The home insurer initially disputed certain payments due to the lack of proper contractor documentation.
Example — What went right (do this): Another homeowner used a contractor who provided a Certificate of Insurance naming the homeowner as an interested party, showed WCB registration, and arranged builders’ risk for materials on site. All permits were pulled and inspections were logged. When a burst pipe from a contractor mistake caused water damage, the claim resolution was straightforward because the documentation proved compliance and coverage.
These examples underline why paperwork and permits are not bureaucratic hurdles; they are protective tools.
How Steadfast Constructions Ltd. helps you manage insurance risk
Steadfast Constructions Ltd. incorporates insurance best practices into every project:
- They verify contractor insurance and WCB before work begins and provide homeowners with copies of certificates.
- They coordinate permits and inspections with the City of Edmonton so the project has the correct documentation and inspection trail.
- They maintain a project closeout folder that includes invoices, inspection sign-offs, and warranty information, exactly the records insurers ask for.
- For larger projects, Steadfast advises on builders’ risk coverage and helps coordinate who arranges and pays for it.
If you want a single team that handles the paperwork and keeps the project compliant, Steadfast reduces the administrative load and the insurance risk.
Claim preparation: what to collect if something happens
If the worst happens, having the right records speeds settlement:
- Photos of damage and pre-loss pictures, where possible.
- Invoices, receipts, and proof of payment for work and materials.
- Contractor certificates of insurance and WCB confirmation.
- Permit documents and inspection receipts that relate to the damaged work.
- Any communications with the contractor (emails, change orders, warranty notes).
Submit these to your insurer ASAP and keep copies. If the event involves injury, contact emergency services and WCB as appropriate; for property damage, notify your broker early, as many policies require prompt notice.
When you might need specialist coverage
Consider specialist policies when:
- You’re doing a full home gut and rebuild.
- You’re installing expensive bespoke finishes or art that require agreed-value cover.
- The contractor asks you to accept deliveries or store materials off-site.
- You’re financing a large addition or creating a rental suite that changes occupancy type.
A broker can advise whether you need a renovation endorsement, builders’ risk, or agreed-value coverage for unique items.
Expert perspective
“Renovations change everything about a house’s risk profile, from the replacement value to who’s walking across the floor,” says Laura Mendes, Senior Risk Advisor (quote reflects industry practice). “Treat insurance like a renovation task, schedule it early, document it clearly, and don’t hire anyone who can’t show current insurance and WCB coverage.”
Conclusion
Renovations are worth doing, and with the right insurance planning, they become manageable rather than risky. Here’s your quick checklist:
- Tell your insurer before work begins and ask what endorsements you need.
- Ask contractors for proof of Commercial General Liability and WCB registration. Keep certificates on file.
- Pull permits and get inspection sign-offs; don’t cover inspected work prematurely.
- Consider builders’ risk or course-of-construction coverage for large projects.
- Keep a tidy project folder with invoices, permits, photos, and warranties.
If you want a practical hand to manage permits, trades, and insurance documentation, Steadfast Constructions Ltd. can handle that coordination across Edmonton. Contact Steadfast Constructions Ltd. to book a feasibility review. We’ll review permit triggers, verify insurance expectations, and provide a closeout folder that protects you and your investment.
Frequently Asked Questions (FAQs)
Q1: Do I need to tell my insurer before renovating my home?
A1: Yes. Major renovations change the risk profile of your property. Informing your insurer early lets them advise whether you need an endorsement, temporary course-of-construction coverage, or updated dwelling limits. The Financial Consumer Agency of Canada recommends checking your policy before starting renovations.
Q2: Will my home insurance cover damage caused by a contractor?
A2: It depends. Your insurer may cover some forms of accidental damage, but many policies exclude contractor negligence or require contractor insurance and WCB confirmation. Verify the contractor’s Commercial General Liability coverage and keep their certificate on file. Provincial guidance recommends asking contractors for a certificate of insurance and WCB number.
Q3: Should I require a contractor to have WCB coverage?
A3: Yes. In Alberta, WCB coverage protects workers and reduces liability for homeowners if a worker is injured. Ask for the contractor’s WCB registration as part of your hiring checklist.
Q4: Do permits affect my ability to make an insurance claim?
A4: Yes. Permits and inspection sign-offs are key pieces of evidence that work was completed to code. Work done without required permits or that fails inspection can complicate or reduce claim payments. Always follow City of Edmonton permit procedures for applicable renovations.
Q5: What records should I keep in case I need to make a claim?
A5: Keep a project folder with the contract, detailed invoices (labour vs materials), proof of payment, contractor insurance certificates, WCB confirmation, permits and inspection receipts, photographs of the site, and correspondence with trades. These documents make claims faster and more likely to be approved.
