Can You Update Your Home Insurance Anytime?

Many homeowners assume that once they sign a home insurance policy, they’re locked in until the next renewal period. The truth? You can update your home insurance policy anytime and in some cases, you absolutely should.

Whether you’re renovating your kitchen, installing a new roof, or finally making your basement rental suite official, changes to your home can affect your coverage needs. Keeping your insurance policy up to date ensures you're properly protected and that you won’t be left paying out-of-pocket for damage or losses your current plan doesn’t reflect.

Please note: This blog provides a general overview of updating your home insurance policy. It is not all-encompassing and should not be taken as specific advice. Be sure to discuss your unique circumstances with a licenced insurance broker to receive guidance tailored to your situation.

Why You May Want to Update Your Home Insurance

Life changes and so does your home. Here are some of the most common reasons people in Canada update their home insurance policies:

1. You’re Renovating or Upgrading Your Home

Renovations can significantly increase the value of your property, and in turn, the cost to rebuild it. Whether you're finishing your basement, upgrading your kitchen, or installing solar panels, it's important to inform your insurer. Unreported upgrades can lead to gaps in coverage. For example, if you’ve added a home office or rental suite and something goes wrong, your insurer may deny your claim if they weren’t aware of the changes. On the flip side, adding security systems, fire alarms, or sump pumps may qualify you for insurance discounts. Updating your insurer can potentially lower your premiums and offer peace of mind.

2. You’ve Purchased Expensive Items

Did you recently buy a new TV, expensive jewelry, or a valuable art piece? Most policies have set limits on coverage for personal belongings. If your high-value items exceed those limits, you might need to add a endorsement to make sure they’re fully covered.

3. You’re Renting Out a Part of Your Home

More Canadians are offsetting mortgage costs by renting out their basement or a spare room. This changes your home’s risk profile, and it must be disclosed to your insurer. You might need landlord insurance or additional liability coverage, depending on your situation.

4. You’ve Found a Better Deal

You can change your home insurance company at any time, but you’ll need to be intentional in how you do it. If you’re changing insurance companies before your policy’s expiration, you could be charged a cancellation fee. You’ll also want to pay attention to when you want your new policy to take effect. A lapse in coverage can leave you both financially exposed and with a higher home insurance rate. If you’re considering making the switch because you found a cheaper home insurance policy, you should speak to your current provider before finalizing any changes. While you can switch homeowners insurance whenever you want, it may be more cost-effective to wait until the policy renewal date before changing companies, plus they may offer you a more competitive plan before you leave.

What Happens When You Make a Change?

Making changes to your home insurance policy is relatively straightforward, but there are a few things to keep in mind:

• Your premium may change. If the changes you’ve made increase the value or risk of your property, your monthly premium may go up. If they reduce your risk, you may qualify for a lower premium.
• Coverage limits may be adjusted. If you’ve added a basement suite or upgraded your kitchen, your policy may need to increase your dwelling or contents coverage limits.
• You may need to add endorsements. Specific modifications—like adding a rental unit or installing a home-based business—may require you to include extra coverage options to stay protected.
• There may be administrative fees. Some insurance providers may charge a small fee for policy amendments made outside of the renewal period. However, this is often outweighed by the importance of having the correct coverage in place.

When It May Make Sense to Wait for Renewal

While you can update your home insurance at any time, there are situations where it may make more sense to wait until your annual renewal. For example, if you’ve made minor lifestyle changes, like redecorating or purchasing modest household items that don’t significantly impact your property’s value or risk level, it’s usually fine to wait. The renewal period is also a convenient time if you're considering switching providers or bundling your home and auto insurance, as it allows for a smooth transition without penalties. Plus, if you're shopping around for better rates, waiting until renewal can make it easier to compare policies and lock in the best deal. That being said, it's important not to delay reporting major changes like renovations, the addition of a rental suite, or the purchase of high-value items. These updates can significantly affect your coverage, and postponing them could leave you underinsured, or worse, result in denied claims.

How to Make a Change to Your Home Insurance

Updating your policy is easier than you think. Here’s how to do it:

1. Review your current coverage.
   Take a look at your current policy details — what’s covered, the limits, and your deductibles. Knowing where you stand will help guide the changes you need to make.
2. Contact your insurance broker or provider.
   This is where BIG Insurance can help. Our licensed brokers can walk you through what changes make sense and help you understand the impact on your policy and premiums.
3. Provide documentation.
   Depending on the update, you may need to submit proof. Gather documentation like receipts for renovations, photos of new items, or details of a rental agreement.
4. Sign off on the policy update.
   Once the changes are approved, you’ll receive updated documentation reflecting your revised policy. Keep a copy for your records.

Keeping Coverage Up to Date Keeps You Protected

Your home is likely your biggest investment and your home insurance policy should reflect its true value and current use. Whether you’ve made a small change or a major overhaul, it’s a smart idea to check in with your insurance broker to make sure your coverage is keeping up.

At BIG, our brokers make it simple to review, adjust, or upgrade your home insurance policy at any time of the year. We’ll help you understand what’s necessary, what’s optional, and what works best for your budget.

Talk to a BIG Insurance broker today to make sure your home insurance is up to date — and that you're not leaving anything to chance.