Renovating Your Home? Don’t Make This Insurance Mistake
Home renovations are exciting, whether you’re upgrading a kitchen, adding square footage, or finally tackling that long-overdue remodel. But there’s one mistake homeowners make all the time: forgetting to update their insurance.
Your homeowners’ policy is based on the value and structure of your home as it currently exists. Once you start renovating, that changes, and if your coverage doesn’t keep up, you could be underinsured.
If your project increases your home’s value, you’ll likely need to adjust your dwelling coverage. A new kitchen, bathroom, or addition can significantly raise rebuild costs. Without updating your policy, you may not have enough coverage if something goes wrong.
During construction, there are additional risks to consider:
- Theft of materials or tools
- Property damage mid-project
- Liability exposure if someone is injured on-site
If you’re hiring a contractor, always verify they carry their own liability and workers’ compensation insurance. This helps protect you if an accident occurs during the project. Even so, it’s important to notify your insurance advisor before work begins; some projects may require temporary adjustments or endorsements to your policy.
If your home becomes unlivable during renovations, your loss of use coverage may help with temporary living expenses, but only if your policy reflects your current situation.
The bottom line: insurance shouldn’t be an afterthought. Before construction starts, take time to review your coverage. It’s a simple step that can protect your investment and prevent costly surprises down the road.
