Does the Standard Homeowners Insurance Policy Cover Renovations?
Before you hire a contractor or start a renovation project, you should review your current homeowners policy with one of our insurance agents. When you renovate your home, you’re typically increasing its value and potentially increasing the cost of repairs down the road. You may need to boost your homeowners policy limits to protect your home once the renovation project is complete.
However, your standard homeowners’ policy typically excludes theft of material and supplies to the dwelling while your home is under construction. It’s important to note that homeowners’ insurance may not always cover liability during new construction or renovation. It also doesn’t provide protection for the home’s contents during new construction.
Further, it doesn’t provide protection for accidental damage in the course of construction due to improper handling, mechanical breakdown, rust, and corrosion, or dropping items. Most policies also specifically exclude damage from acts of terrorism or war, earthquakes, and flooding.
Therefore, you’ll likely want to add some key coverages unique to home remodeling projects. Before your home remodeling project commences, you’ll need to make sure you have the appropriate add-on coverage to cover things that a basic homeowners policy won’t.
Vacant Home Insurance
If you are living somewhere besides your home for 30 days during your renovation, vacant home insurance can protect it from the unexpected.
Other Insurance Considerations to Keep in Mind
If you’re hiring contractors for your home renovation project, your contractor should have coverage to protect themselves and you. At a minimum, your contractor should have workers compensation and liability insurance. It’s a good idea to ask your contractor to provide you with a copy of their certificate of insurance. If your contractor is also using subcontractors on your home renovation project, the subcontractors should have the appropriate coverages as well.
It’s also important to review your homeowners insurance policy upon completion of your renovation. Certain renovations, such as increased square footage, adding a swimming pool, or updated kitchen, baths, flooring with high-quality materials, may increase the value of your home.
