Home Insurance and Renovations: Common Questions - NYCM Insurance Blog

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Jun 29, 2020

Home Insurance and Renovations: Common Questions

As you begin to plan renovations to your home, you’ve probably got a lot on your mind. Between the design and cost of the project, choosing the right contractors and possibly learning to temporarily live in less-than-ideal conditions, probably one of the last things on your mind is insurance.

That being said, it’s important to consider your home insurance throughout your home renovation process. Here are some of the most common questions people have about their home insurance and planned renovations:

Do I need to tell my insurance company about my home renovations?

It’s important to keep your home insurance company informed about any renovations or additions you may be making to your home as  they can affect the worth of your digs. For example, if the renovations will increase the value of your home, you will want to make sure that you are insured for the correct amount.

What is Builders Risk insurance?

Builders risk insurance or construction risk insurance is designed to protect construction materials and equipment during a construction or renovation project should those items incur a physical loss or damage. The particulars of what is and is not covered varies between insurance carriers.

Eligible clients for builders risk insurance may take out a policy if they are constructing from the ground up or undergoing a remodeling or installation project.

What is “Dwelling Under Renovation” coverage?

Just what it sounds like! If you’re undergoing a home renovation project, chances are you’ve invested a decent amount in supplies to complete the project. Adding dwelling under renovation coverage to your home insurance policy can protect project materials while they are either in route to your home or being stored on your property. Having this coverage can help you replace the materials should they be stolen or damaged during renovation.

Dwelling under renovation also protects you from foundation collapse -- an incident that can happen during renovation projects when pressure causes basement walls to unexpectedly collapse.

What is Vacant Home insurance?

Not planning to stay home while the renovations are being made? If you plan to be out of the house for 60 days or more, then you might want to consider adding vacant home insurance which can protect your home while you are away. This could come in handy should a storm cause damage to your home and you don’t realize it until two months later!

Who should I talk to about my insurance options?

There is a lot to consider when renovating your home and many different insurance options to explore. Take some of the stress off of yourself by talking to your home insurance agent. They will be able to best advise you on what you need based on your individual situation and help keep your home well insured and protected.

To learn more about a home insurance policy through NYCM Insurance, click on the button below.