Picking the Right Policy Could Save Your Project
When you’re renovating or building, it’s easy to focus on design choices and contractors — but the insurance you choose is just as important. In Canada, there are two main types of residential construction coverage:
- Course of Construction (COC) Insurance
- Builder’s Renovation Insurance
Choosing the wrong one can lead to coverage gaps, claim denials, or lender delays. Let’s break down the differences so you can start your project with the right protection in place.
What Is Course of Construction (COC) Insurance?
Best for:
- New home builds.
- Major renovations when the home will be vacant.
- Projects where the existing structure is mostly demolished.
What it covers:
- The structure under construction.
- Building materials on-site.
- Labour value of completed work.
- Certain liability exposures during construction.
- Optional soft cost coverage for expenses from project delays.
Typical term:
3–12 months, with extensions available if delays occur.
Why it’s important:
COC is often required by lenders and sometimes by municipalities before permits are issued. If you’re tearing down most of your home or building from the ground up, this is the policy you need.
What Is Builder’s Renovation Insurance?
Best for:
- Renovations where the home remains occupied.
- Structural upgrades, additions, or interior remodels.
- Projects where most of the original structure remains intact.
What it covers:
- The existing structure.
- The new renovation work.
- Building materials stored on-site.
- Personal property coverage for residents.
Typical term:
Matches the renovation schedule, often 3–12 months.
Why it’s important:
It bridges the gap between your standard home insurance and the extra risks of construction, without removing your personal contents coverage.
Side-by-Side Comparison
| Feature | Course of Construction (COC) | Builder’s Renovation |
| Occupancy | Vacant | Occupied |
| Project Type | New build, major rebuild, full gut | Addition, remodel, structural upgrade |
| Coverage | Structure under construction, materials, labour, liability | Existing structure + renovation work, materials, personal property |
| Lender Requirement | Often required | Sometimes required |
| Policy Term | 3–12 months | 3–12 months |
| Soft Cost Coverage | Often included or optional | Optional |
Canadian Example Scenarios
Scenario 1 – COC Needed
A Toronto homeowner demolishes everything but the foundation to rebuild a two-storey home. The property will be vacant for nine months. The bank requires proof of COC insurance before releasing construction funds.
Scenario 2 – Builder’s Renovation Needed
A Calgary family adds a second floor to their occupied bungalow. They live in the home during the project, so Builder’s Renovation is the right fit — keeping their personal contents covered while protecting the new work.
How to Choose the Right Policy
- Confirm your occupancy status — Will you be living in the home or moving out entirely?
- Detail your scope of work — The amount of demolition and structural change matters.
- Ask your lender early — They may have strict policy requirements.
- Consider extra coverages — Such as soft cost coverage to protect against delay-related expenses.
Why Getting It Right Matters
If you buy the wrong type of policy:
- Certain perils (like theft of materials or damage during demolition) may not be covered.
- Your lender could halt financing until you correct the coverage.
- Claims may be denied if the insurer determines the policy didn’t match your project type.
The Bottom Line
Course of Construction insurance is designed for vacant, large-scale builds and rebuilds.
Builder’s Renovation insurance is tailored for occupied homes undergoing renovations.
Choosing the right one keeps your investment — and your peace of mind — protected from day one until the final inspection.
🔨 Not sure which you need? We’ll help you choose the right policy.
Get your construction insurance quote today
