Home Renovation Critical Risks

Whether your project is DIY or undergoing a major home renovation avoid coverage gaps and exposure to a fire, theft, or injury.
Homeowners’ policies are not all equal and typically exclude structural work, DIY mistakes, or any ongoing damage.

Here is a list of renovation risks to avoid:

Before starting your home, renovation or DIY project pull the required permits for electrical or plumbing work to avoid denial of claims with DIY work damages. (3)

Call your insurance agent, make sure the liability of your homeowners covers the project or you may need to purchase a standalone liability policy for the period of the project.

If you are renovating a home and it is inhabitable during the project, you might need a Vacancy permit or a Builder’s Risk Policy to cover materials and ongoing construction. (1)

Consider increasing your coverage with an Umbrella policy, standard limits may fall short if anyone gets injured while working on the jobsite. (2)

Leaving materials in an unsecured environment are highly susceptible to theft. Special Endorsements added to your policy will cover any theft of tools, or building supplies. (2)

After the completion of your renovation, your home’s valuation will increase to avoid being under insured during a future claim adjusting your Dwelling Coverage to reflect the market and structural value. (4)

Action Steps:
1. Call your agent first: Review your policy and if it covers home improvements, provide scope and timeline of the work.
2. Policy Limits: Update your personal property and liability limits before and after the renovation.
3. Document Progress: Detailed records of before and after photos and keeping all receipts, and permits are vital for proving your home’s new value upon completion.

Taking care of these items before renovations begin can prevent costly and frustrating issues later.

References:
1. Ansay & Associates 2. Vyrd 3. Forbes 4. AAA