Skip to content

Read the latest COVID-19 updates from CAA North & East Ontario.
CAA Stores are open for Membership purchases and renewals only. CAA Insurance Agents and CAA Travel Consultants are available by phone or virtual appointment. Click here for details.

Nail it: What to Know When Renovating Your Home

Did you know that a home renovation project can affect your home insurance? That’s because your insurance rates are based on your current home value. Here are a few things that may impact your premiums and are good to consider before work begins and be sure to consult with your insurance agent or broker when the work is done.

Installing or upgrading your home alarm system.

Protecting your home and belongings from theft can help you save on your policy. CAA Members SAVE $20 on the purchase of any security system with Think Protection and get three months of free monitoring.*

Adding a swimming pool.

While a new pool might be popular with friends, it adds potential risks to your home. Install a gated fence around your pool to decrease risk.

Renovating or replacing your roof.

In aging homes, roofs can lead to higher insurance premiums as the risk for leaking and water damage is greater. Replace damaged roofs to save on home insurance.

Expand your living space.

New additions to your home might be necessary as your family grows but adding square footage to your home increases its value.

Adding a backwater valve.

A backwater valve is a one-way valve that is installed on your home’s sanitary sewage line. A property with an installed and maintained backwater valve will prevent the sewer from backing up and flooding your basement. Some insurance companies will even offer a discount on your policy!

Building an outdoor deck.

Similar to expanding your living space, adding an outdoor deck can increase the value of your home, possibly requiring more insurance coverage. Adding a second story deck can also increase potential risks. Speak with your insurance agent or broker to make sure your current policy protects the new value of your home.

Install a water detection sensor.

Reduce the risk of water damage by adding a water detector to your home. Some insurance companies will even offer a discount on your policy!

Kitchen and Bathrooms

Everyone loves an updated kitchen and bath, but keep in mind the increase in value this brings to your home. Speak with your insurance agent or broker to make sure your current policy protects the new value of your home.

Upgrade your plumbing and wiring.

Replacing and maintaining your plumbing can help reduce the likelihood of clogged water lines and water damage. Similarly, replacing aging electrical wires can help prevent future damage.

Should I tell my insurance company I’m renovating?

Short answer – yes! Forgetting to inform your insurer of renovations could cost you in the long run. Your insurer’s goal is to offer you coverage that corresponds to the value of your residence. In other words, if they don’t know what your home is worth after the renovations, and you file a claim, your compensation may be based on the value before the work. Moreover, if there’s an incident, your payout could be lower, or you may not be compensated at all. With most insurance policies, you are contractually obligated to advise of any improvement, extension or addition to your home within 90 days of starting the work. If you are considering renovating your home, speak with a licensed CAA Insurance Agent for a complimentary policy review to understand the impacts of your home makeover and find ways to maximize your savings.

Save on Home Renos with CAA Rewards®

Whether you’re undertaking major or cosmetic home improvements, save on your summer renovations with these CAA Rewards partners.

  • Add a splash of colour and SAVE 25% and EARN 3% in CAA Dollars® with Dulux® Paints.*
  • Upgrade your kitchen décor and SAVE AN EXTRA 5% in-store and online with Stokes.*
  • Refresh your home for less and SAVE AN EXTRA 5% in-store and online with Bouclair.*
  • For bedding, dinnerware, and more…shop online and EARN 5% in CAA Dollars at Linen Chest.*
  • Get a good night’s sleep and EARN 15 CAA Dollars online with Endy.*

**Terms and conditions apply. Partners and offers are subject to change without notice. Visit for more details. Logos and trademarks are the property of their respective owners.