Renovations raise the value of a home, and also what it would cost to rebuild or repair. A policy written before the work might not reflect it.
Why to tell your insurer
- Rebuild cost goes up. A finished basement, a new kitchen or an addition adds to the cost of rebuilding the home. If the policy limit is not updated, there may be a gap.
- Risk changes during the work. Construction brings its own risks: open walls, contractors, temporary heating and materials on site.
- Occupancy may change. If you move out during renovations, the home may be treated as unoccupied or vacant, which can limit coverage.
Questions about contractors
- Does the contractor carry their own liability insurance and workers' compensation coverage? Ask for proof.
- What happens if a worker is hurt on your property? In some situations the property owner may bear responsibility.
- Who is responsible for damage caused during the work? Make sure it is stated in the contract.
Builder's risk
Large projects or new builds may call for a builder's risk policy that covers the structure while it is under construction. Ask your insurer or broker if your project qualifies.
Keep records
Keep photos before, during and after the work, plus contracts, permits and receipts. They support a claim and help establish the value of what was added.
Questions to ask
- Does my dwelling limit need to go up after this work?
- Will the home be considered vacant while I'm not living there?
- What does the contractor need to carry, and what does my policy require?