Home Insurance and Renovations: Common Questions - NYCM Insurance Blog

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Nov 13, 2023

Home Insurance and Renovations: Common Questions

When you start to plan home renovations, it’s safe to say that you have a lot on your plate. Between the design process, hiring qualified contractors, the overall cost of the project, and the possibility of having to temporarily live in less-than-ideal conditions, it’s likely that insurance is the last thing on your mind. It’s still important to consider your home insurance and how it can be impacted throughout your home renovation process. We’ve gathered common questions people have about their home insurance and how it relates to their planned renovations. Continue reading to learn more.


Should I Tell My Insurance Company About Home Renovations?

The short answer is yes. It’s important to keep your home insurance company informed about any renovations or additions you may be making to your home as these changes can have a major effect on whether or not it is considered “insured to value.” If the renovations will ultimately increase the value of your home, you will want to make sure that those changes are reflected on your policy. Otherwise, you may no longer be fully covered in the event of a loss.


What is Builders Risk Insurance?

Builders risk insurance, otherwise known as construction risk insurance, is specifically designed to protect the construction materials and equipment during a construction or renovation project, should those items incur a physical loss or damage. It’s important to know that the particulars of what is and is not covered will vary 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 “Theft of Materials” Coverage?

If you’re undergoing a home renovation project, there is a high chance that you’ve invested a decent amount in supplies to complete the project. Adding this type of coverage to your home insurance policy can help protect project materials while they are both in route to your home and being stored on your property. Having this coverage can help you replace the materials should they be stolen or damaged during renovation.


What is A Dwelling Under Renovation/Construction Policy?

If you are planning to stay elsewhere while renovations are being completed, you will want to reach out to your agent to discuss a “dwelling under construction” policy. If you believe your home will be empty for an extended period of time, purchasing this type of insurance policy can help best protect your home while you are away.


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 pressure off yourself by consulting your home insurance agent, as they will be able to advise you based on your individual situation.


To learn more about a home insurance policy through NYCM Insurance and the many home insurance discounts that we offer, check out the link below!