Home Insurance For Renovations: Temporary Coverage Solutions

​Renovating your home can be an exciting yet stressful process, filled with anticipation of transforming your living space into something new and improved. However, during the renovation process, your home is often more vulnerable to risks like fire, theft, or accidents, which could lead to costly damages. Ensuring that your home insurance coverage is adequate and up-to-date during renovations is crucial. Temporary coverage solutions can offer the additional protection you need while your home is under construction or being remodeled.

Why Renovations Affect Your Home Insurance
When you undertake a renovation, your home insurance needs may change significantly. Renovations can increase the value of your home, alter its structure, and introduce new risks that your standard home insurance policy might not cover. For instance, a home that is partially gutted or has contractors working on it is more susceptible to accidents, theft of construction materials, or damage due to unfinished structures.

Standard home insurance policies are typically designed to cover the home as it is, but they may not account for the unique risks associated with renovations. This is why temporary coverage solutions are essential during this period. They provide the necessary protection to cover any gaps in your standard policy and ensure that your home and investment are adequately safeguarded.

Types of Temporary Coverage Solutions
There are several types of temporary coverage solutions you can consider during home renovations, each designed to address specific risks associated with the renovation process.

1. Builder’s Risk Insurance
   Builder’s risk insurance is a specialized type of property insurance that covers buildings under construction or renovation. It typically covers damage to the structure itself and materials on-site, whether they are installed or not. This coverage is crucial if your renovation involves significant structural changes, such as adding a new room or floor, as these changes might not be covered by your existing home insurance policy.
   
   Builder’s risk insurance can protect against risks such as fire, theft, vandalism, and certain types of weather damage. It’s often a requirement for large renovation projects, especially those that involve multiple contractors and subcontractors.
   
   
2. Vacant Home Insurance
   If your home will be unoccupied for an extended period during renovations, you may need vacant home insurance. Standard home insurance policies often exclude coverage if the home is vacant for more than 30-60 days, considering the increased risk of damage going unnoticed or the property being targeted by thieves or vandals.
   
   Vacant home insurance covers the property during periods of vacancy, protecting against risks such as fire, weather damage, and theft. It’s especially important for extensive renovations that require you to live elsewhere temporarily.
   
   
3. Increased Coverage Limits
   Renovations often increase the value of your home, which means you might need to increase your coverage limits to ensure your new investment is protected. For example, if you’re installing a new kitchen or upgrading your bathroom, the cost of these improvements should be reflected in your insurance coverage. Increasing your policy limits can provide additional protection for the enhanced value of your home, ensuring that any damage during or after the renovation is fully covered.
   
   
4. Liability Coverage
   During renovations, the risk of accidents increases, especially with contractors and workers on your property. If someone is injured while working on your renovation, you could be held liable for their medical expenses. Increasing your liability coverage or adding an umbrella policy can provide extra protection against these risks, covering legal fees, medical costs, and any potential settlements.
   
   
5. Temporary Dwelling Coverage
   If you need to move out of your home during renovations, temporary dwelling coverage can help cover the costs of alternative accommodations, such as a rental property or hotel. This coverage ensures that you’re not out of pocket for living expenses while your home is uninhabitable.

Steps to Take Before Renovating
Before starting your renovation, it’s essential to review your current home insurance policy and discuss your plans with your insurance provider. Here are some steps to ensure you have the right coverage in place:

• Notify Your Insurance Company: Always inform your insurance company before starting any renovation project. They can advise you on whether additional coverage is needed and what type of policy changes might be required.
  
  
• Update Your Policy: Based on the scope of your renovation, your insurance company may recommend updating your policy limits, adding temporary coverage, or purchasing a builder’s risk policy.
  
  
• Document the Renovation: Keep detailed records of your renovation, including receipts, contracts, and photos of the work. This documentation will be crucial if you need to file a claim related to the renovation.
  
  
• Review Contractor Insurance: Ensure that your contractor has adequate insurance coverage, including general liability and workers' compensation. This helps protect you from liability if a worker is injured on your property.
  
  
• Evaluate Security Measures: During renovations, your home may be more vulnerable to theft. Consider enhancing your security measures, such as installing temporary fencing, additional locks, or security cameras.

Conclusion
Home renovations can add significant value to your property, but they also come with increased risks that your standard home insurance policy might not fully cover. Temporary coverage solutions like builder’s risk insurance, vacant home insurance, and increased liability coverage can provide the protection you need during this critical time. By working closely with your insurance provider and taking proactive steps to ensure adequate coverage, you can focus on the excitement of your renovation project without worrying about potential financial setbacks.

At Brad Spurgeon Insurance Agency Inc., we aim to provide comprehensive insurance policies that make your life easier. We want to help you get insurance that fits your needs. You can get more information about our products and services by calling our agency at (409) 945-4746. Get your free quote today by CLICKING HERE. 

Disclaimer: The information presented in this blog is intended for informational purposes only and should not be considered as professional advice. It is crucial to consult with a qualified insurance agent or professional for personalized advice tailored to your specific circumstances. They can provide expert guidance and help you make informed decisions regarding your insurance needs.