Home renovations can breathe new life into your space. But before the first nail is hammered, make sure your insurance is up to date. At Crain Insurance Group, we help you stay protected from blueprint to final walk-through.
1. Why Renovations Impact Your Insurance
- Increased dwelling value: Upgrades raise your home’s replacement cost.
- Higher risk of loss: Construction zones come with added risks.
- Liability exposure: Injured workers without coverage can become your responsibility.
2. Notify Your Insurance Agent Before Renovations Begin
Always inform your agent before you start a project. Without notice, a claim could be denied.
3. What Is Covered Under Standard Home Insurance?
- Dwelling protection: Covered perils like fire or hail
- Personal property: Belongings inside the home
- Liability protection: Injuries/property damage
- Loss of use: Temporary living expenses
But major renovations can create gaps in coverage if not updated.
4. Renovation Projects That May Require Additional Coverage
- Room additions or second stories
- Garage conversions
- Full kitchen or bath remodels
- Rewiring or plumbing upgrades
- Roof replacements
- Pool installations
5. What Is a Builder’s Risk Policy?
- Covers property damage during renovations
- Protects building materials on-site
- Includes vandalism, theft, weather damage
- Usually short-term (3–12 months)
6. Contractor Insurance Requirements: What to Ask
- General liability
- Workers’ compensation
- Builder’s risk (if not carried by you)
Always request a Certificate of Insurance listing your name and address.
7. Temporary Vacancies: Insurance Implications
If you move out during renovations, most policies reduce or exclude coverage after 30–60 days. Consider:
- Vacancy endorsements
- Vacant home policies
- Builder’s risk with vacancy protection
8. Increased Personal Liability and Medical Payments Coverage
More foot traffic = more risk. Consider increasing liability coverage to $300,000+ and adding an umbrella policy during the project.
9. Renovation-Related Claims: What Can Go Wrong
- Fires from faulty electrical work
- Storm damage to exposed areas
- Theft of materials
- Injuries on an unsecured site
10. How to Ensure Proper Coverage After Renovation
- Update dwelling coverage
- Update personal property inventory
- Review liability exposure (e.g., pools, rentals)
- Check for new discounts (new roof, wiring, etc.)
11. Common Mistakes to Avoid
- Not notifying your insurer before starting
- Relying solely on contractor insurance
- Underinsuring post-renovation
- Forgetting to adjust personal property limits
- Ignoring increased liability risk
12. Final Thoughts: Renovate Responsibly
Make sure your renovation adds peace of mind, not exposure. Contact Crain Insurance Group before your next project to review your coverage.
Crain Insurance Group — Protecting What You’re Building.