renovation insurance

Do I Need Renovation Insurance if I’m Remodeling My Home?

August 27, 2021

Many people are starting to remodel to stay up to date on the current home renovation trends. Though most homeowners insurance policies cover renovations, there’s some instances where they don’t cover things such as overhauls or remodeling.

This is perhaps why the cost of home improvements have skyrocketed. From kitchen upgrades to simple remodeling, spending is considerably high. That’s why you need to make sure you have the right coverage for home renovations.

Learn whether or not you need renovation insurance to remodel your home.

Home Renovation Insurance – What is it?

Home renovation insurance also refers to builder’s risk insurance or dwelling under renewal insurance. It’s the type of insurance that offers coverage for a home during remodeling and renovation projects. While your home is being remodeled you may have to live somewhere else for a period of time and you want to be protected in the event of a loss. Empty homes can be a target for theft and vandalism. Accidents can also happen during renovations like broken pipes, leaks, injuries, etc.

Keep in mind that each home renovation insurance policy comes with different coverage limits. It typically depends on your home’s value and the type of policy you buy.

What Does Home Renovation Insurance Cover?

The policy protects the property if anyone is hurt during the renovation process. It also offers coverage if the property or surrounding area is damaged. While you’re away pipes can burst or faulty wiring can cause a fire. If you’re away and something like this happens the more damage it will likely cause to your home. That’s why not insuring an empty home during a major renovation can be risky.

Does Homeowners Insurance Cover Remodeling?

As described previously, most homeowners insurance policies offer coverage for home improvements. However, it’s essential to discuss it with your insurance agent to understand what your policy covers.

The homeowners insurance policy typically includes these coverages:

  • Dwelling coverage – covers the repair or replacement cost of your home
  • Personal property coverage– covers belongings that are inside the property
  • Other structures-covers the repair or replacement of other structures or buildings on the property
  • Personal liability coverage– protects homeowners if an individual is injured while on their property

If you’re doing small remodeling tasks such as changing bathroom sinks or redoing your countertops, the homeowners insurance policy covers you. Even then, it’s always best to check your policy to ensure you have sufficient protection. If you’re doing a larger renovation that will require you to live somewhere else for a period of time, you’ll need renovation insurance. If you have workers at your home it would also be a good idea to have renovation insurance. It’s very possible a worker can fall off a ladder or injure themselves on your property and hold you liable.

Summing Up

In a nutshell, you need renovation insurance to keep your property protected in case you’re away or have workers in your home. You’ll need renovation insurance in all major remodeling tasks that are performed on your property.