Most homeowners don’t know their standard home insurance policy may leave them unprotected during a renovation. Here’s what to check and fix before breaking ground.
Your policy during renovation:
Standard home insurance policies commonly reduce or eliminate coverage when:
- Structural work is in progress
- The home is vacant for 30+ consecutive days
- Renovation value exceeds a threshold (often $5,000–$10,000)
Required action: Call your insurer before work starts. Notify them of scope and timeline. Get written confirmation of continued coverage, or arrange a renovation endorsement.
Your contractor’s required coverage:
General liability: Minimum $2M, preferably $5M. Covers damage caused by the contractor to your home or third parties. Ask for a certificate of insurance — verify it’s current and names you as additional insured.
WSIB clearance: If a worker is injured on your property and the contractor isn’t WSIB-registered, you may be personally liable. Verify the clearance certificate before work begins.
The lien risk:
Under Ontario’s Construction Act, subtrades can lien your property for amounts owed to them by your GC — even if you’ve already paid the GC in full.
Protection: maintain a 10% holdback through the 45-day lien period. Require a statutory declaration of payment from your GC before releasing holdback.
What insurance issues have you encountered on GTA renovation projects? This thread helps other homeowners prepare.
home.renovation.reviews — Canada’s renovation community.