A recent survey done by the Canada Mortgage and Housing Corporation shows that Canadians love to renovate their homes. In fact, 40 per cent of households in ten of Canada’s biggest markets underwent some kind of renovation on their home last year. But as much as we love to renovate, we also don’t want to do the work ourselves, with 75 per cent of those homeowners hiring out the work to be done. And that, says Wayne Ross of Aviva Canada, is where we can get into the most trouble.
We often talk on this blog about how using a home equity loan or HELOC to make renovations on your home is a great way to add to your investment and increase the value of your home for a low cost. But, if you’re not careful and if you choose the wrong contractor, it could cost you far more – in time, money, and heartache – in the long run.
It only takes a quick look at shows such as Holmes on Homes, that outline just what financial ruin homeowners can suffer when they hire the wrong person to do the job. But, says Ross, “while stories of renovation headaches are frequent, there are thousands of reputable contractors out there. A little preparation beforehand will certainly ease the stress.”
Of course that preparation includes things such as interviewing contractors to somewhat extensive lengths, and making sure that they have all the permits and licenses that are required of them. Of course, get lots of references from any contractor and make sure that you can always see samples of their work. These are all common sense measures that homeowners need to take when hiring any contractor to complete work on their home, but one that homeowners often overlook is to make sure that they get insurance for the work to be done as well.
Ross says that your insurance broker must be contacted before any work is done, to ensure that you have the proper coverage in place should anything happen to workers while on your property; or if any damage should occur to your home throughout the process.
Home renovations can certainly add tens of thousands of dollars onto your home when they’re done properly. But selecting the right contractor is just the first step. Also make sure that you’ve got yourself covered in case anything should go wrong. So that even when it does, you’re prepared and your home renovation can still be the dream you thought it would be.
