How Building a Deck Can Impact Your Insurance Liability

Summer’s coming and it’s the perfect time to get outside and transform your backyard into a personal outdoor paradise. But just like the renovations you do inside your home, backyard projects can directly impact your insurance policy. Having the right amount of insurance for your home is the best way to protect your investment and cover the actual value of your home. Keep reading to learn more about your next steps!

Notify your broker

Before you begin any major renovation project, whether indoors or outdoors, take a moment to review your insurance policy documents and contact your insurance broker. You’re obligated to report any changes to your home that may affect its value.

Obtain the proper permits

Whether you’ll be building your new deck yourself or hiring someone to do it for you, as the homeowner, it’s your responsibility to make sure you have all permits required by the city. Without a permit, your new deck may not be considered a legal structure. The city could order you to remove it, or potential buyers could request a reduction of the selling price when you decide to put your home on the market.

Covering the construction crew

During any major construction project, insurance liability increases as the risk of damage, theft or injury increases. Whether your deck contractor is flying solo or working with a crew, it’s important to verify that you have adequate coverage while construction is underway. 

You should also ensure that the contractor you choose to work with has adequate coverage of their own. They’re required to have liability coverage for the work they’re performing as well as worker’s compensation coverage for every member of their team. Before agreeing to work with someone, ask to see proof of their insurance coverage and request a copy for your records. 

Increasing the value of your home

Improvements like adding a deck can increase the value of your home and therefore increase the amount of insurance coverage you need. Your insurance is designed to cover the replacement cost of your home and all of its contents, so it’s essential to update your policy to ensure that your beautiful new deck is covered.

Full Home Insurance Coverage in Edmonton

For more information on how home improvements can affect your insurance policy, contact MBS Insurance Brokers today. We’ve proudly provided home, automobile, commercial, life, and recreational insurance to Edmonton and surrounding areas for more than 50 years. Contact us today to learn more about our services or to get your free insurance quote now.