What would happen if the contractor repairing your plumbing accidentally started a fire in your home? Or if the workers repairing your roof dropped a bundle of shingles on your neighbour's car? Many homeowners assume that their homeowners insurance policy would protect them in such circumstances. However, this may not be the case.

Unlike car insurance policies that must provide a minimum level of coverage, homeowners insurance policies can vary considerably. Some are very comprehensive; others are more restrictive, covering a defined number of "specified perils" and excluding anything else. As a result, many homeowners insurance policies do not automatically protect you against damage or liability claims resulting from the actions of a contractor doing work on your home. You need this protection even when your contractor is fully insured.

To be certain you are properly covered, contact your insurance broker or agent before starting any work on your home. Explain the work you plan to have done, who will be doing it, and ask if your present insurance policy provides adequate coverage. If not, make arrangements to update your homeowners insurance so you and your family are fully protected from any damage or injury caused by the contractor.

For more information about homeowners insurance, click HERE to visit the Insurance Bureau of Canada website.