Renovations Change the Risk
Insurance is always based on risk. That is how we calculate rates and determine which coverage will best suit your needs. Construction of any kind in your home increases the risk of damage. For example, you may be replacing your windows, and one day there is torrential rain, flooding your home with water, causing damage to your floors and walls.
If you have exposed walls, you may need to add an endorsement to your policy called a building under construction, it will cost a bit extra, but if anything were to happen to your home during this time, you would be covered subject to restrictions and limitations on your policy.
If you are leaving your home for more than 30 days while renovations are happening, you will need to get a vacancy permit on your home, as the risk of damage including theft and burglary does increase when the home is unattended.
There needs to be Liability Coverage
If you hired a contractor to do your renovations, be sure to see their Certificate of Insurance with your address on it to ensure they are properly covered. If not, you could be on the hook if a worker is injured on your property.
Update your Policy
Once your renovations are complete, you should call your broker to let them know about the upgrades that have been made to your home. These updates will change the cost to rebuild your home, and could affect all future claims if there is no record of your upgrades. You may see a slight increase in your premiums, but it’s always better to be covered properly now to save you from a potential issue down the road.