Does Your Home Insurance Cover Renovations?

Your real estate property’s size, condition, overall value, and maintenance costs determine the kind of homeowners insurance you get. However, the monetary figures involving all those aspects can change over time, especially if you decide to expand or renovate your home.

Is there home insurance for renovations? The simple answer is yes; most standard coverage policies allow claims for home improvement expenses. Nevertheless, you still need to check with your provider to go through the specific projects covered.

Checking with your agent lets you know how much coverage you’ll use, avoiding underinsurance, which can leave you vulnerable to unexpected incidents. It is also essential to determine if your current liability insurance can cover damages or injuries during construction.

What if You Don’t Have Home Insurance for Renovations?

If you already spoke with your insurance agent, and they’ve clarified that renovations are not included in your current coverage, you may purchase policy changes. Depending on the scope of your remodeling, your provider may recommend the following updates to your home insurance:

  • Increase your premium. An insurance premium is the amount you pay the insurance company on an agreed-upon term. Having a higher premium provides you with higher coverage.
  • Upgrade your liability coverage during construction. Ensuring that your liability insurance can cover any damage or injury during renovation can help you with medical bills from on-site accidents.
  • Increase your personal assets insurance. Having a higher premium to cover unexpected damage on your valuables during renovation can be highly beneficial. If your expensive appliances like TV sets, gaming consoles, and even valuable artworks get damaged, you may file a claim.
  • Add a “dwelling under construction/renovation” provision. Including this type of coverage on top of your existing homeowners insurance will give you an extra safety net if your building materials get stolen or damaged. You may file a claim if the incident happened on-site or while the materials are en route.

Talk to a Trusted Insurance Agency

Most home remodeling projects you’ll take on can cost too much for standard coverage plans. Basic insurance also tends to be too limited to match your property’s value after renovations. For more helpful information and accurate policy quotes, get in touch with us at Nicholson Insurance.