The short answer
Home renovation insurance is less one product than the steps that keep a homeowner covered while work is done: telling the insurer before work starts, confirming the contractor carries liability insurance and workers' compensation, arranging a renovation endorsement or builders' risk cover for larger projects, and raising the home's insured value once the work adds to it. A licensed broker can explain which of these apply to your project.
- Homeowners planning a kitchen, bathroom or basement development
- Families adding an addition, a garage suite or a second storey
- Owners moving out while the house is gutted or rebuilt inside
- Do-it-yourself renovators handling their own demolition, framing or tiling
- Anyone who has finished a project and not yet updated the policy
4 licensed brokers in the network handle this. In Alberta, Canada, a request for home renovation insurance can be offered to up to three of them, chosen because they are licensed for this line and place. They are test brokers while we are in demo.
See the brokers → Outside Alberta, Canada you can prepare and save a request today; sending opens place by place. Brokers answer with their own quotes. Broker.insure does not quote, advise or take commission.
01 / What it covers
The parts worth understanding
Telling the insurer first
Most home policies expect you to report a material change in the risk, and major work usually counts. Some insurers add a renovation endorsement; others want a separate policy once the house is gutted or unlivable.
Builders' risk for bigger projects
A policy that covers the building, materials and work in progress during construction. Large additions and full interior rebuilds often need it, and some contractors arrange it themselves, so ask who is responsible.
The contractor's own insurance
Commercial general liability protects you if the contractor damages your home or a neighbour's, or injures someone. Ask for a certificate showing the policy dates and limits before work begins.
Workers' compensation
In Alberta, WCB covers workers injured on the job. A clearance letter shows whether a contractor's account is in good standing; ask WCB how responsibility works if a contractor or their workers are not covered.
Materials and tools on site
Lumber, cabinets, appliances and fixtures delivered before installation are attractive to thieves. Ask whether they are covered while stored in the garage or the yard, and whose policy responds.
Living elsewhere during the work
If you move out, the home may be treated as unoccupied or vacant, with conditions about heat, checks and security. Extra living costs are normally paid only after a covered loss, not for a planned move.
Updated value after the work
A new kitchen, finished basement or addition raises what it would cost to rebuild the house. Tell the insurer when the work is finished so the building limit reflects it.
02 / Get ready
Bring this, and expect these questions
Gather
- A written scope of work, with start and finish dates and the rooms affected
- The contractor's name, their liability insurance certificate and their WCB clearance letter
- Building, electrical, plumbing or gas permits, and who pulled each one
- The project budget and the value of materials that will be stored on site before installation
- Whether you will live in the home during the work, and for how long if not
- Any structural changes: removed walls, new foundations, an addition or a raised roof
- Work you plan to do yourself, and which trades are being hired
- Your home policy and the date you told the insurer about the project
- Your mortgage lender's requirements if the renovation is financed
A broker will ask
- What exactly is being done, and is any of it structural?
- When does the work start and finish, and will anyone live in the house during it?
- Who is the general contractor, and do they carry liability insurance and WCB coverage?
- Are permits in place for the electrical, plumbing, gas and structural work?
- Will materials or appliances be delivered and stored before they are installed?
- Are you doing any of the work yourself?
- Will the renovation add a suite, a home office or another change in how the house is used?
- What will it cost to rebuild the home once the work is finished?
Not sure of an answer? Leave it. "Not known yet" is a fine answer, and a broker will help you fill it in.
03 / Build your request
Answer a few questions. Get your own list.
Pick what fits. Your answers shape the list beside them, and they are saved to your request as plain facts a broker can read. "Not sure yet" is always a fine answer.
04 / Three situations
See which one sounds like yours
A couple developing their basement into a legal suite
A couple in Calgary hired a contractor to frame, wire and plumb their unfinished basement into a legal secondary suite they plan to rent. The work will take about three months, and they will keep living upstairs throughout.
First steps. Before the first wall goes up, tell the insurer about the project, the permits and the plan to rent the suite. Collect the contractor's liability certificate and WCB clearance letter, and ask the broker how the policy changes during construction and again once a tenant moves in.
A family moving out for a full interior gut
A family bought a 1970s split-level and plans to strip it to the studs, replacing the wiring, plumbing, windows and kitchen. They will rent an apartment for six months while the general contractor runs the job.
First steps. Ask the broker whether the existing home policy can stay in place once the house is empty and gutted, or whether a builders' risk or renovation policy is needed. Settle in writing whether you or the general contractor arranges that cover, and what security and site checks are expected.
A homeowner retiling a bathroom himself
A homeowner is replacing a bathroom floor and shower surround on weekends, doing the demolition and tiling himself and hiring a licensed plumber only to move the drain. He has not mentioned the project to anyone.
First steps. Call the insurer or a broker and describe the project, including the work you are doing yourself, before the old tile comes up. Keep the plumber's invoice and permit, photograph the work as it progresses, and ask whether water damage from your own installation is treated differently.
05 / Words you will hear
The jargon, in plain words
- Builders' risk
- Insurance for a building under construction or major renovation, covering the structure, materials and work in progress until the project is complete.
- Material change
- A change in the home or its use that an insurer would want to know about, such as a major renovation, a new suite or the house sitting empty.
- Certificate of insurance
- A document from the contractor's insurer or broker showing their policy, its limits and the dates it is in force. It is evidence of cover, not the policy itself.
- WCB clearance letter
- A letter from Alberta's Workers' Compensation Board showing whether a contractor's account is active and in good standing on the date it is issued.
- Faulty workmanship
- Poor or incorrect work by whoever did the job. Policies commonly exclude the cost of redoing it, though some damage that results may be covered.
06 / Common mistakes
What trips people up
- Starting work without telling the insurer, then finding the policy expected to hear about major changes.
- Taking a contractor's word that they are insured instead of asking for a certificate and a WCB clearance letter.
- Moving out for months and forgetting that an empty, open-walled house can fall under vacancy rules.
- Skipping permits for electrical, plumbing or structural work, which can raise questions later from insurers, lenders and buyers.
- Leaving new appliances and fixtures in an unlocked garage for weeks before installation.
- Finishing the project and never raising the insured value of the home to match the work.
Ready when you are
Turn this into one clear request.
Save it, add what you know, and choose when to send it. A licensed broker who handles home renovation insurance takes it from there.
07 / Questions people ask
Straight answers
Do I need to tell my insurer before I renovate?
Many home policies require you to report changes that materially affect the risk, and opening walls, moving plumbing or adding living space can qualify. Telling the insurer before work begins, rather than after, keeps the question from coming up for the first time at claim time. Ask in writing whether the project needs an endorsement, a different policy or no change at all.
Does home insurance cover damage caused by my contractor?
Damage a contractor causes is first a question for the contractor's own liability insurance, which is why a current certificate matters. Your home policy may respond to some resulting damage, such as a fire, but faulty workmanship itself is commonly excluded. Keep the contract, the certificate and photos of the work, and ask the broker how the two policies fit together.
What is builders' risk insurance for a home renovation?
Builders' risk, sometimes called course of construction insurance, covers the building, materials and work in progress against causes like fire and theft during a project. It is common for additions, major rebuilds and homes that are empty during work. Either the owner or the contractor may arrange it, so the contract should say who does.
How do I check that my contractor has WCB coverage in Alberta?
WCB-Alberta issues clearance letters that show whether an employer's account is active and in good standing. You can ask the contractor for a current letter or request one through WCB's online services. Check again on long projects, since status can change. For questions about your own responsibility if a worker is not covered, ask WCB directly.
Am I covered if I move out during the renovation?
Not automatically. A home left empty during a renovation can fall under vacancy or unoccupancy conditions, and some insurers want a different policy once a house is gutted. Rent or hotel costs for a planned move are normally your own, since extra living expenses usually follow a covered loss. Tell the broker your move-out dates before you leave.
Do I need to update my insurance after a renovation?
Usually, yes. A new kitchen, finished basement, addition or upgraded systems can raise what it would cost to rebuild, and the building limit should reflect that. Updated wiring, plumbing or roofing may also change what insurers offer. Send the broker the final invoices, permits and photos once the work is signed off.
General information, not insurance advice. Broker.insure is a directory and request service: it is not an insurer and does not quote, bind or advise. Policy terms, availability and what is required where you live depend on your situation and on licensed professionals. Updated 2026-10-31.