Renovating Your Home: When to Tell Your Insurer
Learning goal: Know why a renovation can leave your dwelling limit too low, and what to check about your contractor's insurance before work starts.
Short answer
Before or shortly after work begins. Triple-I advises contacting your insurer before or shortly after construction starts, to raise your coverage so the improved home is insured. Also check your contractor's liability and workers comp insurance, since gaps in their coverage can fall on you if someone is hurt or property is damaged.
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On this page
The Fuller Picture
A new kitchen, an addition or a finished basement raises what it would cost to rebuild your home. If your dwelling limit stays the same, a loss after the work could leave the upgrade underinsured. Renovations also bring workers onto your property, which raises liability questions.
Key Takeaways
- Triple-I: "Contact your insurance agent or representative before—or shortly after—construction begins in order to increase the homeowners insurance coverage on your house."
- That way, "if the new addition is destroyed or damaged, you will be covered for the cost of repairing or rebuilding the improved structure."
- "Verify the insurance coverage of the contractor and the subcontractors. If the coverage is insufficient, you may need to fill in the gaps," per Triple-I.
- Workers who aren't the contractor's full-time employees "may not be covered under the contractor's workers compensation policy."
- Keep receipts and photos of the finished work for your home inventory.
Real-World Example
The new kitchen nobody mentioned
Marcus spends $60,000 remodeling his kitchen and adding a bathroom, but doesn't tell his insurer. A year later, a fire damages the house. His dwelling limit was set on the old house, and the rebuild estimate now exceeds it, so part of the upgrade isn't covered. Had he called before the work started, his agent could have raised the limit to match the higher rebuilding cost.
Common Mistakes
- Waiting until after a loss to mention a renovation.
- Hiring a contractor without seeing proof of liability and workers comp coverage.
- Assuming the contractor's workers comp includes their helpers.
Interactive Exercise
Before the renovation
Do these before the first day of construction.
Tick each step as you do it. Your checklist is saved in this browser.
Knowledge Check
Question: You're adding a room to your house. According to Triple-I, when should you contact your insurer?
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- Insurance Preparedness Checklist: Twelve insurance questions worth having an answer to, with a place to learn more about each one you have not looked at yet. No score.
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Questions to explore next
Questions readers often ask next about this topic:
- How much should my dwelling limit rise after a remodel?
- What insurance should my contractor have?
- Does my policy cover the house during construction?
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The factual claims on this page were checked against these sources. Rules and figures change, so check the source itself if you need to confirm the current version.
- Remodeling your homeInsurance Information Institute (Triple-I)
Educational information, not advice: This lesson is for general education only, not legal, financial, or insurance advice. Actual coverage, discounts, and requirements depend on your policy’s wording, your insurer, and the laws of your state. Confirm specifics with your own insurer or a licensed agent before making a decision. Insurpedia does not sell insurance and does not recommend specific insurers. Renovation points come from Triple-I.