The more time you dedicate to planning your renovation, the less likely you are to face unexpected issues, overspend, or make choices you'll regret. A well-planned renovation should give you the look and feel you're going for while also increasing your home's value and potentially helping you save on costs, such as insurance and energy bills. Before you start swinging hammers and tearing out drywall, here are the most common renovation mistakes to avoid.
 

1. Setting an unrealistic budget. No contractor can deliver a complete kitchen renovation for $20,000 if your budget is only $10,000. Be cautious of contractors who promise otherwise. If you're not willing to compromise on your dream renovation, consider saving more money before starting the project or look for ways to reduce costs in areas that can be updated later, such as appliances or furnishings. It's also wise to set aside an extra 10% to 20% of your budget for unexpected expenses. If you've ever watched a home renovation show, you know that surprises often lurk behind the walls.
2. Choosing DIY instead of leaving it to the pros. While there are many DIY projects you can tackle around your home, it's best to leave major renovations to the experts. Tasks such as electrical work, plumbing, and roofing should be handled by qualified tradespeople. This not only ensures your safety but also protects your home, as mistakes can lead to costly and dangerous consequences.
3. Hiring the cheapest contractor. When hiring a contractor, it's important to consider more than just the price. Choosing the cheapest contractor can result in subpar work, so be cautious of low quotes. Since you're investing a significant amount of money into your home, you'll want the job to be done correctly and on time. Always ask for references and ensure you get everything in writing before any work begins. You should also confirm that your contractor is licensed, fully insured, and has general liability insurance. Don't forget to ask about their expected payment schedule as well.
4. Choosing style over substance. It’s unlikely that your guests will compliment you on your fire-resistant windows, your insulation, or your impressive new sump pump. However, even though these renovations may not be as satisfying as aesthetic updates, they are essential for your home’s safety and efficiency. If you’re looking to do a makeover, take the opportunity to assess the overall health and safety of your home. Your new hardwood floors will thank you for patching that leak in the roof first.
5. Forgetting about permits. This is generally the least exciting part of renovations, but it’s one of the most important steps you can take. Whether you manage the permits yourself or include them in your contractor’s agreement, obtaining the necessary permits is crucial for protecting the future value of your home. Without the proper permits, city officials may delay work, impose fines, or even order you to reverse any completed work. Prospective buyers may also try to negotiate a lower price if they discover that you didn’t obtain permits for recent renovations.
6. Overlooking insurance. Before starting any renovations, it’s important to consult with an insurance broker. They can help you understand how the changes to your home might impact your insurance costs and coverage in the event of a claim. For example, certain upgrades to plumbing or electrical systems could potentially lower your costs. On the other hand, if you’re adding square footage to your home or installing a pool, you may see an increase in costs to reflect your home’s new value and the additional liability risks.
7. Tackling too much at once. It might be tempting to complete everything at the same time, but it's often more effective to prioritize your projects. For example, if your new open-concept kitchen is where you prefer to hang out during get-togethers, you might not need to invest in a new living room right away. Or you could consider choosing prefab over custom cabinetry to free up more of your budget for a gas fireplace. When all is said and done, you'll be more satisfied if you give each project the attention and budget it deserves.

A renovation can be exciting, but it's crucial to be prepared for any surprises that may pop up along the way. If you're a current OTIP policyholder, contact us at 1-833-494-0089 to review your existing home insurance policy and discuss enhancing your protection with additional optional coverage. If you’re not insured with OTIP and are shopping for home insurance, call us at 1-833-615-9326 to get a quote and receive a $20 gift card of your choice!