What's a homeowner to do with his or her leisure time, especially during the cold winter months? Renovate; what else?

Recent numbers from the Canadian Mortgage and Housing Corporation show 46 per cent of Canadians in major urban centres are planning some form of renovation to their home in the coming year. In Toronto alone, 89 per cent of respondents said they have a high or very high intention to renovate. In Vancouver, the number climbs to 91 per cent and in Halifax to 92 per cent. That means that there will be a lot of trips to home improvement centres and a lot of dry wall cutting, hardwood laying and wall painting taking place across the country.

Whether you're building a deck in the backyard, tearing down an interior wall to open up a room or finishing your basement, you'll want to do your homework before getting started.

Prior to heading to the nearest home improvement store or opening up the Yellow Pages to source a contractor, it's important to give your insurance broker a call to determine whether your new addition can be covered under your current policy and just how comprehensively.

"Many homeowners don't realize that renovations might not be covered under their current home insurance plan and that they should review their policy before getting started," said Shelley Toyota, director of underwriting at insurance company RSA. "An insurance broker or insurance company representative can help determine what can and cannot be covered; how comprehensive the coverage is; what safety standards must be met; and, the costs associated with the renovation itself and associated insurance." Toyota continued, "And more interestingly, there are lots of easy steps you can take, while in renovation mode, to actually reduce your monthly premium, while improving the safety and quality of your home."

Some insurance companies offer over-the-phone counsel on reliable local contractors and vendors and how to contact them. This takes away some of the risk factor and time associated with hiring a third party.

For those interested in making home renovation part of their retirement lifestyle, Shelley recommends keeping in mind the following factors:

- Get it in writing: Establish how you will communicate with your architect and contractor. Be sure to get everything in detailed writing and keep a copy of all correspondence.

- Get it on film: Taking video footage or photos of the before and after is a great way to record the progress of the project and document any problems or irregularities to ensure you're not liable for something you didn't do.

- Round up: When calculating renovation costs, add 25 per cent to the final number to budget for the unexpected.

- Protect yourself: Ensure you have proper permits and insurance, and that all your legal obligations are met.

Once the renovations are complete, it's important to consult with your local insurance broker to re-assess the value of your home and determine the most appropriate coverage you may need for your home insurance.

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Matt Duffin
mduffin@apexpr.com
416.924.4442 Ext 237