- TD Insurance survey shows homeowners don't have all the facts on home
renovations -
TORONTO, April 29, 2013 /CNW/ - It's spring, and we're in the midst of
prime house hunting season. For many homeowners who want a change
without a big move, they may decide to give their home a facelift
instead of moving. But research from TD Insurance has found that the
majority of homeowners are not considering the insurance implications
of their renovations: only 6% checked their policy to ensure they were
covered during the upgrades and just 16% asked their insurer if their
policy needed an update following their last renovation.
"Whether you're installing water-efficient plumbing or simply new
cabinetry, before you pick up a hammer or drill, it's important to
understand and learn more about the insurance implications of upgrading
your home," says Dave Minor, a vice president at TD Insurance. "For
example, while being handy around the home is convenient for upgrades
such as painting or installing crown molding, more challenging projects
like tackling the electrical work yourself could actually invalidate
your insurance policy. Speaking with your insurance provider can be a
quick way to help clarify the unknown."
Dave Minor busts three common home insurance myths and offers advice for
handy homeowners to consider before upgrading their abode:
Myth #1: "My home will be covered under my original insurance policy
during renovations"
Fifty-six percent of homeowners incorrectly believe they will always be
covered by their original home insurance policy while their home is
being renovated, and 24% are unaware that moving out for more than 30
days during renovations requires a policy update.
"Upgrades requiring extensive work, such as adding an extension to your
home, may require you to change your entire policy to a building under
construction," says Minor. "And, if you're not living in your home
during renovations, it becomes an easier target for thieves and
undetected water damage, which is why your insurer may require you to
secure a vacancy permit if you move out for more than a month."
Myth #2: "If my contractor is injured on my property while working, his
insurance will cover it"
Contractors are trained professionals, but accidents can and do happen.
However, 41% of homeowners incorrectly believe that if a contractor is
hurt on their property while working, they will not be liable.
"If a contractor or their employees are injured on your property, you
could be liable for their medical bills, lost wages, or damages for
pain and suffering - all out of your own pocket," says Minor. "When
choosing a builder, ask to see their public liability insurance
certificate. The amount of insurance coverage they have would depend on
the type of renovation, the number of employees and cost of the
renovation. The higher the limits of coverage, the more protection you
would have."
Myth #3: "Renovations don't affect my insurance coverage"
Many homeowners don't know which renovations can decrease your premiums,
but are willing to find savings: eight-in-ten homeowners (79%) said
they would be likely to make certain upgrades to their home if they
could save money on insurance premiums in the longer term. "Simple
renovations like installing security devices, such as alarm systems and
deadbolts, or fixing your weathered roof may decrease your premiums,"
says Minor.
On the other hand, many homeowners don't know the types of renovations
that can impact their premiums: 22% are unaware that upgrading your
electrical system or replacing a weathered roof could lower your
premiums, and 53% did not know that installing granite countertops or
expensive appliances could increase their premiums.
"Remember, anything that may impact the value of your home or
probability of a claim will also affect what and how much insurance
coverage you need," says Minor. "Although water proofing your basement
may not be as exciting as new stainless steel kitchen appliances, these
types of renovations can help protect your home and belongings. It's
always a good idea to talk to your insurance provider to understand
more about your coverage."
Looking to learn more about home insurance? Visit the TD Insurance Learning Centre for more information.
About the TD Insurance Survey
TD Insurance commissioned Environics Research Group to conduct an online
custom survey of 2,748 Canadians aged 18 and older, including 1,851
homeowners who have insurance. Responses were collected from February 7
to 18, 2013.
About TD Insurance
TD Insurance offers a wide range of products to help protect clients
from the 'accidents of life' including credit protection, auto, home,
health, life, and travel insurance. With more than 3 million clients,
TD Insurance authorized products and services are available through a
network of more than 1,150 TD Canada Trust branches, the Internet and
telephone. For more information, visit www.tdinsurance.com
SOURCE: TD Insurance
