Does Insurance Cover Condo Renovations and Improvements?

Renovating a condo comes with a unique set of rules and responsibilities. Unlike a detached home, condo owners often need approval from their condo association before starting renovations, even for small upgrades inside their unit.

Skipping this step or hiring unlicensed contractors for plumbing, electrical, or structural changes could get you in trouble. Not only could you face fines from your condo board, but unauthorized or illegal renovations could void your insurance coverage, which is something you do not want to happen. 

In this blog, you’ll learn what betterments and improvements coverage is, the types of renovations it typically includes, and the most important do’s and don’ts to follow if you’re thinking about renovating your unit. 

Key takeaways

Unit improvements and betterments coverage is a part of condo insurance that covers upgrades, renovations, or custom features added to your unit, typically included in standard condo insurance policies. 

What is unit improvements and betterments coverage?

Unit improvements and betterments coverage is a part of condo insurance that protects any upgrades, renovations, or custom features added to your unit, whether by you or a previous owner. This includes enhancements like upgraded flooring, new countertops, custom cabinetry, or built-in shelving that go beyond the original builder-grade finishes.

Although most standard condo insurance policies include this coverage, it’s always a good idea to double-check. In the end, you want to buy a policy that can help pay to repair or replace the upgraded features if they’re damaged by a covered peril, such as a fire.   

Condo betterments and improvements examples

Betterments and improvements refer to enhancements that go beyond the standard finishes provided by the builder and are often added to personalize or increase the value of your condo unit. Here are some examples of the most common condo betterment and improvements: 

• Kitchen remodels (ex. new countertops, cabinets, or layouts)
• Bathroom renovations (ex. tile work, new fixtures, vanities)
• Flooring upgrades (ex. replace carpet with hardwood)
• Built-in shelving or custom cabinetry
• Upgraded appliances (ex. gas stoves, high-end fridges)
• Smart home installations (ex. thermostats, lighting systems)
• Built-in lighting (ex. pot lights, under-cabinet lights, recessed lighting)
• Wall-mounted fireplaces or electric heaters
• Ceilings (ex. removing popcorn ceilings, installing coffered or tray ceilings)
• Crown moulding, wainscoting, or decorative wall panels
• Custom closet systems 

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The do’s and don’ts of condo renovations

Renovating a condo isn’t quite the same as updating a detached house–there are extra rules and steps you’ll need to keep in mind. To help you avoid costly mistakes and stay protected, here are a few key do’s and don’ts to adhere to as you plan and begin a renovation.   

Document all renovations and keep receipts

Keep a detailed record of all upgrades, including before-and-after photos, permits, and receipts for materials and labour. These documents help you prove the value of your improvements in case of a claim, reduce disputes, and improve your chances of getting properly reimbursed.   

Don’t start without condo association approval

Every condo association has specific rules and guidelines for renovations, so before starting any project, your first step should be to review them and get permission, if necessary. If you don’t, you may end up facing fines, delays, or even being required to undo the work you’ve done.  

Update your condo insurance policy after a renovation

After completing a major renovation that increases your property’s value, be sure to notify your insurance company. You may need to slightly adjust your coverage or coverage limits so that your policy reflects the new value and ensures you’re adequately protected.  

Don’t use unlicensed contractors

Hiring uninsured or unlicensed contractors to renovate your condo can lead to serious problems. Not only could you face penalties from your condo board, but your insurance provider may also refuse to cover damages or losses related to the work. Instead, choose qualified professionals with up-to-date certifications.   

Add a floater for high-value upgrades

If you install a particularly expensive item, like a high-end stove, you may see if you can add it as a floater to your condo insurance policy. This will cover that specific high-value item at its full appraised value, which is good, since it may otherwise exceed the standard limits included in your policy.   

Don’t assume whether you need a permit or not

Before getting started, check your condo board’s and municipality’s rules around building permits. Even seemingly minor upgrades can sometimes require approval. On top of that, permits can take several weeks to process, so leaving this to the last minute can put your renovation at risk.   

Next steps

Now that you understand how renovations can impact your insurance, it’s important to have a policy that protects those upgrades. With YouSet, betterments and improvements coverage is included automatically in every condo insurance policy, so you can get the protection you need at the best price in just minutes.