Renovations can be filled with equal measures of excitement and stress, but you can diminish some of the stress with home renovation insurance. This will free your time and mind so you can focus more on the enjoyable parts of creating your new space, and not on everything that could go wrong—and how much it could cost you.
Make no mistake: While home improvements can increase the value of your home, they can also affect your home improvement insurance. So, cool your crowbar and keep reading: we’re going to tell you what you need to know about home renovation insurance.
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Here’s the thing: There’s no such thing as home renovation insurance, insofar as this type of insurance does not exist as a separate product. Home renovation insurance really refers to the act of making sure your existing home insurance for renovations covers you during and after a renovation.
After all, when you renovate your home, you may need extra coverage to protect against incidents and accidents that may occur.
What’s more, your existing insurance is in place to cover your existing home. Adding more square footage or different features can change the price of your premiums—and the change would always mean an increase.
There are some changes you can make to your home that will reduce the cost of your insurance (like getting a new roof) and others that will not require or change home improvement insurance updates at all (like taking down an old clapboard in the bathroom and replacing it with tile).
Revisiting your insurance for a house under renovation is essential. There are a couple of reasons you’re going to want to speak with your insurance provider or broker before you renovate your home:
Being underinsured doesn’t pay off in the long run.
And remember, there are other Renos you can do that will decrease your premiums, like getting that new roof so it pays to check in with your insurance company either way.
The problem is your homeowners insurance is only meant to cover your home when you are living in it. If you’re not going to be there for an extended period (usually defined as anywhere from 30-60 or more, depending on your policy), you should look into vacant home insurance. This type of insurance will protect your home against any damage that happens while you’re away—like water damage—which you may not notice until you get back.
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It doesn’t matter if you’re doing the work yourself or hiring a contractor with their own insurance (and any contractor you hire should always have their own insurance): you need to make sure your home insurance for renovations can cover potential perils of renovation.
Again, call your agent or insurance provider before you begin your project. Here are some types of coverage you may need or want to add to your policy.
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Home renovation insurance is important to consider, especially when you’ll be adding onto the square footage of your existing home since your personal liability and property insurance limits extend only to what is in your home, right now. An addition will not be covered should anything go wrong.
Even if you end up not needing home improvement insurance, at least speak with your agent or insurance provider so you can go into your renovations with your eyes wide open.
No, but you should make sure contractors and subcontractors have insurance before you hire them. Ask to see proof.
Claire Smith Claire is a creative entrepreneur with a variety of marketing and content creation skills, including blog and web copy writing, research, and strategy. She has a Masters in Cultural Studies from Queen's University and is known for thinking laterally about marketing, based on her deep knowledge of people and behavior.
