What insurance do I need during a home renovation in New Brunswick?

During a home renovation in New Brunswick, you need to verify your existing home insurance policy covers the construction period, require your contractor to carry current general liability insurance and WorkSafeNB coverage, and potentially add course-of-construction (builder's risk) insurance for large-scale renovations or additions — gaps in any of these coverages can leave you exposed to significant financial loss.

The first call to make when planning any renovation beyond minor cosmetics is to your own home insurance provider. Most home insurance policies have notification requirements when construction is underway on the property. Some policies reduce or suspend coverage automatically when the home is partially demolished or under significant construction — a reality many homeowners only discover after a loss. Your insurer needs to know the scope and duration of the work so they can confirm your existing coverage holds, recommend any riders or extensions, or advise on additional coverage. This conversation costs nothing and can prevent discovering a coverage gap at the worst possible moment.

For major renovations — gut renovations, additions, or any project that significantly changes the structure or value of your home — your insurance broker may recommend course-of-construction insurance (sometimes called builder's risk insurance). This coverage protects the materials and work in progress from theft, vandalism, fire, and weather damage during the construction period. Standard home insurance typically covers the existing structure but may not cover partially-completed new construction or stockpiled materials on site. An addition project worth $100,000-$160,000 represents real exposure to loss during the months of construction, and course-of-construction coverage is the right tool for managing that risk.

On the contractor side, require two documents before work begins. First, a certificate of general liability insurance — for renovation work on a residential home in NB, a minimum of $2 million in coverage is standard. This protects you if the contractor's work damages your home, your neighbour's property, or causes an injury to a third party. Ask for the certificate directly from the insurer (not just the contractor's word that they're covered), and check that the certificate doesn't expire mid-project. Second, a WorkSafeNB clearance letter confirming the contractor is registered and in good standing. If a worker is injured on your property and the contractor lacks WorkSafeNB coverage, you can be exposed to personal liability. A legitimate contractor produces both documents without hesitation.

Subcontractors are a hidden insurance risk that homeowners often don't consider. When your general renovation contractor brings in an electrician, a plumber, a drywaller, or a flooring crew, each of those subcontractors should also carry their own general liability and WorkSafeNB coverage. Ask your general contractor to confirm that all subcontractors on your project are independently insured. A contractor who is dismissive of this question may be working with unregistered subs who are cutting costs by operating without proper coverage.

For electrical, plumbing, and gas work, the insurance picture intersects with licensing: TSANB-licensed tradespeople performing inspected work gives your home insurance provider clear documentation that the work was done legally. Unpermitted, uninspected electrical or plumbing work discovered at the time of a claim can give an insurer grounds to deny the claim or limit the payout.

From a practical standpoint: notify your insurer, get the contractor's liability certificate and WorkSafeNB clearance in writing before signing, and for any project over $50,000, have a conversation with your broker about whether course-of-construction coverage makes sense for your specific situation. These are low-cost steps relative to the risk they manage.

---

Looking for experienced contractors? The New Brunswick Construction Network connects homeowners with qualified professionals:

• Thirty Four Renovations
• Gionetterenovations