Retirement renovations start with insurance consultations

What’s a baby boomer to do with days, weeks, months and years of previously unavailable free time? Renovate; what else?

More than half of Canadians 50 or older are now reclining comfortably into retirement and 36 per cent are planning to retire before the age of 59. Of these, 38 per cent will choose to spend their new found leisure time renovating their homes for aesthetic reasons or to change their living space, according to a recent study conducted by Leger Marketing and commissioned by Cambrian Insurance Brokers Limited.

Whether you’re building a deck in the backyard, tearing down an interior wall to open up a room or finishing your basement, you’ll want to do your homework before getting started.

Prior to heading to the nearest home improvement store or opening up the Yellow Pages to source a contractor, it’s important to give your insurance broker a call to determine whether your new addition can be covered under your current policy and just how comprehensively.

“Many homeowners don’t realize that your insurance broker should really be your first stop when it comes to home renovations,” said Jim Smith of Cambrian Insurance Brokers Limited. “Your insurance broker can help you determine what can and cannot be covered, how comprehensive the coverage is, what safety standards must be met and the costs associated with the renovation itself and associated insurance.”

Some insurance companies offer over-the-phone counsel on reliable local contractors and vendors and how to contact them. This takes away some of the risk factor and time associated with hiring a third party.

For those interested in making home renovation part of their retirement lifestyle, Smith recommends keeping in mind the following factors:
• Get it in writing. Establish how you will communicate with your architect and contractor. "Make sure everything is in writing and keep all correspondence archived. Be as detailed as possible in order to prevent problems down the road," says Smith.
• Get it on film. Take video footage or photos of the before and after. "Not only is it a great record to look back on when the project is finished, but it can be an invaluable record if there are problems," says Smith.
• Round up when calculating renovation costs and add 25 per cent to the final budget for the unexpected.
• Ensure you have proper permits and insurance, and that all your legal requirements are met.

Once the renovations are complete, it’s important to consult with your local insurance broker to re-assess the value of your home and determine the most appropriate coverage you may need for your home insurance. For those in the 50-plus demographic, Cambrian Insurance Brokers Limited offers WA’s 50 Unique, an insurance solution that couples home and auto coverage and is designed to meet the changing needs of Ontarians aged 50 or older.

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