Does Home Insurance Cover Home Renovations?

Author : consumer coverage | Published On : 15 Sep 2021

Considering a remodel or addition?

Consider home renovation insurance

Though your homeowner's policy will likely cover most home renovation accidents and hazards, consider home insurance for renovations. It will assure you of maximum protection during your renovation, addition, or construction project.

First things first

There are several things that you should do before you begin any project that you are using a contractor to complete. Check to make sure he is licensed in your community and that he has adequate insurance coverage. If the contractor will be using a subcontractor to complete any of the work, ask that they also provide you with proof of that coverage. Contact your insurance agent and discuss with him whether you have adequate coverage for the project that you are undertaking. A room addition, or major kitchen or bath renovation can have a significant impact on a home’s value and you want to be sure that your coverage is adequate. 

What home improvement insurance will cover?

The major coverage which your homeowners insurance policy may not cover is the materials that are used in your project. It will cover them in transit and after they are on your property. Should your house not be habitable for a portion of the time you are renovating, renovation insurance will protect your possessions that remain in the house. Your homeowner's policy may have concerns about a property that is not owner occupied and projects under construction may more easily be robbed or vandalized. Instability in the foundation or the remainder of the house caused by the construction project is also covered under homeowners insurance during remodeling.

Avoid the “fails” of home remodeling projects

A remodeling contractor that I know loves jobs that are time and materials. It is a quick way to find a homeowners insurance binder that your project has gotten much more expensive than you planned. Nearly 40% of renovations cost a great deal more than the owner intended. Interestingly, it’s not down to a slow contractor as much as a homeowner who keeps adding things to the project. Consider controlling costs by signing a contract that locks in a process and a bill of materials that you and the contractor agree upon for the project.

Make sure that that new light fixture you saw and that you just can’t live without is estimated for additional cost and labor if any. Another 40% of renovation projects remain unfinished because cost overruns stoop the project short of completion. Though it may seem a rather strange fail of a home renovation project, about 15% of all failed homeowners projects result in serious disagreements between significant others. Plan the work and work to plan is good advice for this type of work. One last statistic, about 3% of home projects result in damage to a neighbour's property. 

If you are considering a home renovation project now might be a good time to talk to your insurance agent about the project and ask his advice. If you find a less than responsive agent now might also be the time to consider a new homeowners policy. At you will gain access to many of the nation’s premier homeowners insurance companies with agents who will bring their expertise to you and your project while providing the protection you need to complete it without a loss.