Will my home insurance cover damage during a renovation in BC?

Home insurance coverage during a renovation in BC is a grey area that catches many Vancouver homeowners off guard — and the short answer is: it depends heavily on the scope of work, and you must notify your insurer before work begins.

Standard home insurance policies in BC are written for occupied, finished homes in their normal condition. The moment you start a significant renovation, your risk profile changes — and insurers take that seriously. Failing to disclose an active renovation can void your coverage entirely, leaving you exposed to losses that could easily reach six figures in Vancouver's high-cost market.

What typically happens when you notify your insurer is one of three things: they confirm your existing policy covers the renovation period with no changes, they add a renovation endorsement (usually $50-$200/year for modest projects), or they require you to switch to a builder's risk or course of construction policy for the duration of the project. The trigger point for most BC insurers is roughly $10,000-$25,000 in project value, or any work that involves structural changes, removing exterior cladding, or leaving the home partially unoccupied. Always get this conversation in writing.

Builder's risk (course of construction) insurance is the purpose-built product for renovation and new construction. It covers the structure, materials on-site, and work in progress against fire, theft, vandalism, and weather damage. Costs typically run 1-2% of the total project value annually — so a $100,000 renovation might cost $1,000-$2,000 for the policy. Your general contractor may carry their own builder's risk policy, but confirm whether it covers the existing structure or just new work — that distinction matters enormously.

A few Vancouver-specific situations worth knowing about. Strata renovations add another layer: your strata corporation carries building insurance, but since BC's strata insurance crisis around 2020, deductibles for water damage can run $50,000-$250,000 per claim. If your contractor causes a flood during a bathroom reno, you could be on the hook for that deductible — make sure your contractor carries a minimum $2M commercial general liability policy and that you have adequate strata lot insurance. Heritage homes on Vancouver's Heritage Register may face additional underwriting scrutiny, since older materials and construction methods carry higher risk profiles.

Your contractor's insurance is not your insurance. A reputable contractor will carry commercial general liability (minimum $2M, ideally $5M for larger projects) and WorkSafeBC coverage for their workers. Ask for certificates of insurance before work starts — but understand these protect you from the contractor's liability, not from gaps in your own home insurance coverage.

What you should do before any renovation begins:

• Call your home insurer and describe the project scope, timeline, and whether the home will remain occupied
• Get written confirmation of your coverage status during the renovation
• Ask your contractor for their certificate of insurance and WorkSafeBC clearance letter
• For projects over $50,000, seriously consider a standalone builder's risk policy
• If you're in a strata, review your strata's insurance deductibles and ensure your own unit coverage is adequate

For contractor referrals, browse the Vancouver Construction Network directory to find licensed, insured professionals in Metro Vancouver who are accustomed to navigating these requirements.