Most Ontarians aren’t telling their insurers about major home renos: survey

If your home insurance clients in Ontario just finished a major home renovation, there’s a good chance they didn’t tell their insurer about the upgrade, says a recent survey by LowestRates.ca.

Just 47% of Ontario homeowners notified their insurer after completing major home upgrades, leaving many exposed to potential coverage gaps, the survey found. Whether it’s finishing a basement, remodelling a bathroom, or updating plumbing or electrical systems, failing to report these changes can leave homeowners underinsured — or worse, lead to denied claims if something goes wrong, LowestRates.ca warns.

Twenty-six percent admitted they didn’t inform their insurer at all about the upgrades. A similar percentage (27%) were either unaware of the need to notify or chose not to answer.

“Many homeowners don’t realize that upgrades like finishing a basement or adding a bathroom can affect their insurance coverage,” says Steven Harris, a licensed insurance broker and LowestRates.ca expert. “If providers aren’t informed of major changes, policies may not reflect the home’s true value or risk — leaving owners exposed when it comes time to file a claim.”

The survey polled 731 Ontarians who used LowestRates.ca’s home insurance quoter between June 28 and July 3, 2025.

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Do-it-yourself (DIY) projects like painting, flooring, or tiling are “generally safe from an insurance perspective,” Harris says. But more significant renovations — such as adding units, finishing a basement, or fully remodelling a bathroom — require notifying your insurer.

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Most policies require the homeowner to disclose major changes; failing to notify could lead to claim denials and policy cancellation. Additionally, if your insurer discovers undisclosed renovations, they may retroactively increase your premium.

Harris recommends discussing planned renovations within 12 months with your insurer to avoid policy issues. “It’s a simple step that can prevent financial headaches down the line,” he says. “And if you’re hiring a contractor, make sure they carry their own liability insurance, so you aren’t held responsible for any damage they cause.” 

Larger renovations require builder’s risk insurance — a specialized policy protecting homes under construction or renovation from risks like fire, theft, and vandalism. For homeowners, this coverage can also safeguard materials and property from unexpected events, including certain types of water damage, such as burst pipes. However, flooding may require additional endorsements depending on the policy and provider.

LowestRates.ca’s survey found 59% of Ontario homeowners polled reported tackling small DIY projects. Twelve percent reported taking on both small and large renovations, while 5% focused solely on large-scale projects.

Jason Contant

Jason has been an award-winning journalist with Canadian Underwriter for more than a decade, including the past three years as associate editor and, before that, as digital editor for seven years.