What insurance limits are normal on a Vancouver renovation?

Most Vancouver renovation contractors carry $2 million in Commercial General Liability (CGL) insurance, and that's the right baseline for the majority of residential projects. However, depending on the scope of work and where you live, you may need — or want — higher limits.

For standard home renovations like kitchen remodels, bathroom upgrades, flooring, or basement finishing, $2 million CGL is the industry norm and what most homeowners and strata corporations require. This coverage protects you if a contractor damages your property, injures someone, or causes third-party losses during the project. Always ask for a Certificate of Insurance naming you as an additional insured — a reputable contractor will provide this without hesitation.

For larger or higher-risk projects — full home renovations, structural work, laneway house construction, or commercial-adjacent work — $5 million CGL is increasingly common and worth requesting. General contractors managing multiple subcontractors often carry this level as standard. If you're in a strata building, check your bylaws carefully: many Vancouver and Burnaby stratas have bumped their minimum contractor insurance requirement to $2 million or higher since the strata insurance crisis of 2020, when building-wide deductibles skyrocketed to $50,000–$250,000 per water damage claim. Your strata manager can confirm the exact requirement before work begins.

Beyond CGL, here's what else to confirm your contractor carries:

• WorkSafeBC coverage — all BC contractors must have this. Ask for their WorkSafeBC clearance letter, which confirms they're in good standing and their workers are covered. Without it, you could be liable for an injured worker on your property.
• Tools and equipment insurance — covers their gear on-site; less critical for you but shows a professional operation
• Completed operations coverage — part of most CGL policies, this covers claims that arise after the job is done (e.g., a leak discovered months later)
• Errors and omissions (E&O) — relevant for designers, architects, and engineers, not typically for trade contractors

One thing homeowners often overlook: your own home insurance. Notify your insurer before a major renovation begins. Some policies have exclusions or limitations during active construction, and if your home is vacant for more than 30 consecutive days during a project, you may lose coverage entirely. A quick call to your broker before demo day is worth it.

The bottom line: Request $2M CGL as a minimum for any renovation, verify WorkSafeBC clearance, and get the Certificate of Insurance in hand before anyone sets foot on your property. For strata projects, confirm the exact requirement with your strata council in writing. You can find contractors who carry proper coverage through our directory at the Vancouver Construction Network — it's a straightforward way to connect with insured, local professionals across Metro Vancouver.