Opta's loss control experts are seeing a persistent spike in home renovations during the property inspection process for insurers.
Prior to the pandemic, 1 in 50 homes were undergoing renovations. One year later, Opta analysts report a steady increase, with almost 1 in 20 homes inspected undergoing significant renovations.
What impact does this trend have on insurers? “Our analysis shows that homes undergoing renovations have a higher variance in replacement cost,” Opta says in its report on reconstruction costs in Canada in the second quarter of 2021.
Opta cites Statistics Canada figures that show that the month to month percentage change in the total value of permits issued (residential and non-residential) has gone up by 5.7 per cent in Canada in March 2021 compared with February 2021. Residential permits climbed 15.9 per cent month-over-month.
Investments in construction of single-family dwellings totalled $3.8 billion, Statistics Canada adds, versus nearly $4.3 billion for multi-family dwellings.