Stay on Top of Insurance During the Home Renovation Process

Originally published: July 1, 2021

There are number of things a home insurance policy can cover like natural disasters, vandalism, or theft to name a few. Now, what about home renovation insurance?  If you’re considering a remodel, looking into what your policy covers would be wise before any manual work begins. Without insurance policies covering renovations, premiums would rise incredibly. So now is the time to either consider reassessing your own plan to see what is or isn’t covered prior to considering renovation insurance. Saving yourself from on-the-job damage, injury, and reducing your cost long-term is your greatest asset before you get started. 

We get it, it seems overwhelming, but figuring out your plan to stay or become insured can save you the inevitable headache in the future. 

Talk With Your Home Renovation Insurance Provider

Speak directly with your insurance provider to let them know what the plan is. Have details at hand so that you can get an adequate assessment of what they will and will not cover, and if your project requires more coverage. Knowing about potential budget changes before you’re about to end the project rather than starting ensures that you aren’t just losing money in the end. Another perk from keeping your insurance agent in the loop is that the insurance can cover you if the contractor is not, it’s always best to do what you can to minimize risk at every step of the way.

Make an ROI Estimate

Estimating Return on Investment (ROI): When planning a renovation project, it’s important to have an idea of the potential return on investment (ROI). This can help you decide whether the project is worth the cost and if it will provide the desired financial return. To estimate the ROI:

  • Calculate the increase in property value: Compare the estimated value of your home after the renovation to the cost of the renovation to determine the potential ROI.

  • Factor in cost savings: Consider the potential for cost savings, such as lower energy bills due to improved insulation or efficient appliances.

  • Consider market conditions: The real estate market in your area can impact the ROI of the renovation, so it’s important to consider market conditions when making an estimate.

Keep in mind that ROI estimates are just that – estimates – and the actual return on investment can vary. However, making an estimate can still provide valuable insight into the feasibility of a renovation project.

Review Your Policy on Home Renovations

Return to your homeowners’ insurance policy and ensure that any gaps for newly completed renovations or those in the future are filled by either changing your plan, giving it a second look, or shopping for new insurance plans. Remember: safer is always better than cheaper. If the changes are minimal or smaller companies may be able to ensure you for less, it’s best to not have to change insurance companies every time something new is going to happen in the home!

Have the Proper Permits

Get your permits as soon as possible. Every state has their own requirements for larger scale renovations, so if this is part of your home renovation journey it’s best to acquire all legal forms and document every step of the process. Since the responsibility typically falls on the property owner, it’s best to get one step ahead in the  process as soon as you can.

A white paper with blue text that reads, "PERMITS" and a red stamped "APPROVED."

Whether you’ve been on top of your home insurance policy or otherwise, it’s not too late to start getting ahead. Take the time now to assess your budget, the size of your project, and how it will impact the value of your home, it will save you an incredible amount of hassle playing phone tag with the insurance company. By taking a bit of time to make sure you have solid home renovation insurance, you will inevitably provide yourself peace of mind.



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