There are many types of insurance coverage and policies for renovators and home builders in Ontario to protect the value of a property being constructed or altered and even certain extra costs after an insured claim.
Insurance coverage for legal liability to others resulting from incidents during construction is also available.
Home Builders Insurance, also called Builder’s Risk Insurance or Course of Construction Insurance, is important for anyone owning or constructing a dwelling, or doing significant renovations. These policies are usually project-specific and can have different terms to cover the construction period.
Builder’s Risk Insurance is intended to insure a property as it is being built and materials that will become part of it. An option may be available to include the existing structure for remodels and additions.
Liability insurance for injury and property damage to others as a result of the construction is not included in a standard Builder’s Risk policy. Separate liability insurance is required by the builder for their operations and those of sub-contractors. The property owner will also need separate premises liability for the location and existing land for legal liability to others at the location because an injury or damage may not be related to the actual construction.
Homeowners, business owners, builders, contractors, renovators, remodelers, or those doing a ‘flip’ need Home Builders Insurance to cover the property and help protect their finances.
If you are planning on building your own home with or without contractors or if you are a contractor or builder, you can purchase Builder’s Risk Insurance for the project. For a major renovation or addition, although the location owner may have property insurance in place for an existing building, that policy will not automatically cover the portion under construction. A Builder’s Risk Insurance policy should be in place before any work begins. Often insurance isn’t thought of until construction is underway that may result in fewer insurance options.
This content is written by our Morison Insurance team. It is provided for general information only. Insurance needs differ from person to person, and this article is therefore not a substitute for professional advice about your individual insurance needs which can be obtained by speaking to one of our brokers.