Your Homeowners Insurance Policy
The contractor repairing your plumbing accidentally starts a fire in your home. The workers repairing your roof drop a bundle of shingles on your neighbour's car. Who pays for the damage?
Many people assume their homeowners’ insurance covers circumstances like these. But what is covered by homeowners’ insurance policies varies widely; some are comprehensive, but others cover only a certain number of "specified perils," excluding everything else.
Before starting any work on your home, contact your insurance broker or agent. Explain the work you plan to have done, who will be doing it, and ask if your present insurance policy provides adequate coverage. If it doesn’t, update your policy. You need adequate insurance even if your contractor is fully insured.
For more information about homeowners insurance, visit the Insurance Bureau of Canada.