What is home renovation insurance?

From painting the walls and refitting your kitchen, to extending the house to build that study you’ve always wanted, renovations insurance protects your property when you’re carrying out work on your home. If anything, bad were to happen, like a collapsed wall, a serious fire or a theft, renovation insurance would cover the costs incurred.

Home improvements that increase the value of your property can also affect how much insurance you need and how much it will cost. Review your existing policy today and make sure it covers everything you need. Not all policies include home renovation insurance.

However, if you are doing a major renovation, you probably don’t have enough coverage. You’ll likely need to add coverage, including builders risk insurance. Builders risk insurance covers renovation-specific risks like vandalism and theft of materials or tools. Before we get into the nitty-gritty, we should note that it’s important to speak with your insurance agent about your coverage terms. They can help you decide if you have enough coverage to protect you and your home.

How Renovations Affect Home Insurance Coverage

Any time you start renovating, remodeling, or doing home improvement projects, you need to talk to your insurance agent about it. There are two reasons why.

First, you might not be living in the home during that time. If it’s a major renovation, you may have to live elsewhere. That’s a problem for your insurance policy because homeowners policies are specifically designed for owner-occupied homes. The contract you signed with your home insurance company most likely excludes losses during major renovations.

Second, you’re adding value to your home. Insurance policies cover a specific replacement cost—the cost to fix damage to your home or rebuild it at equal quality. The premiums you pay are established by this cost, as well as your home’s square footage. The coverage amount should match the value of your home. If the coverage amount is too low, you’ll be underinsured, which could be catastrophic if you have to file a claim. At the very least, it could mean that your improvements wouldn’t be covered for replacement during a disaster.

If you’re adding on a new room or otherwise increasing the square footage, the American Institute of CPAs recommends specifically listing the addition on your home insurance policy.

Home Improvement Contractor Insurance That’s Customized to You

Whether you specialize in bathroom renovations or basement remodeling, your home improvement business is growing fast. That’s why you need insurance that can keep up!

At Simply Business, we specialize in business insurance coverage designed for home improvement contractors like you. Our insurers’ policies cover the unique risks you face as a contractor, so you can be protected as you work.

Plus, we make it easy to get covered: find an online quote in under 10 minutes or call one of our licensed insurance agents for expert help picking the right policy.

Ready to get covered?