Insurance Considerations During Your Home Renovation

What Homeowners Should Know Before Construction Begins

A home renovation is an exciting investment—but it also changes your insurance exposure while work is underway and after the project completes. Before construction begins, we strongly encourage homeowners to review their insurance coverage to ensure they’re properly protected throughout the renovation process and beyond.

Below are three key insurance considerations every homeowner should discuss with their Insurance Agent.
 

1. Consider Builders Risk Insurance During Construction 

During a renovation, your home is exposed to risks that may not be fully covered by a standard homeowner's policy—especially if walls, roofs, or major systems are opened or modified.

Builders Risk Insurance is a temporary policy designed to cover damage to the structure and materials during construction. It may protect against losses caused by:

• Fire
• Wind or storm damage
• Theft or vandalism of building materials
• Certain accidental damages during construction

Depending on the scope of the renovation, builders risk coverage may be obtained by:

• The homeowner, or
• The contractor (with the homeowner named as an additional insured)

Because coverage arrangements vary, we recommend confirming who is responsible for carrying builders risk coverage and what is included before work begins.
 

2. Notify Your Homeowners Insurance Carrier Before Renovation Starts

Many homeowners are surprised to learn that major renovations can affect their existing homeowner's policy.

Before construction begins, contact your insurance carrier to let them know:

• The type of renovation being performed
• The estimated cost of the project
• Whether the home will remain occupied during construction
• The expected project timeline

Why this matters:

• Some policies limit or exclude coverage during extensive renovations unless the carrier is notified.
• Certain renovations (such as additions, kitchen remodels, or structural changes) can temporarily increase risk.
• Failure to notify your carrier could complicate a future claim.

Your Agent can advise whether any temporary endorsements, policy adjustments, or additional coverage are recommended during construction.
 

3. Update Your Dwelling Coverage After Your Renovation Is Complete

Once your renovation is finished, your home will cost more to replace than it did before—especially if you’ve added square footage, upgraded finishes, or improved major systems.
It’s important to update your Dwelling limit (Coverage A) to reflect the increased replacement cost of your home.

After completion, we recommend:

• Providing your insurer with the final renovation cost
• Confirming that your dwelling limit reflects the home’s new replacement cost
• Reviewing coverage for upgraded materials or custom features

This step helps ensure that, in the event of a covered loss, your insurance will adequately cover the cost to rebuild or repair your renovated home.
 
A Final Note

Every insurance policy is different, and coverage needs can vary based on the scope of work and individual circumstances. We recommend speaking directly with your licensed Insurance Agent to review your coverage before construction begins and after the project is complete.
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Taking these steps will help protect your investment, your home, and your peace of mind throughout the renovation process.

If you have questions about the construction process or documentation your insurer may request, our team is always happy to help.