Is extra insurance coverage required in the event of renovations undertaken in the home?

29 Apr
Is extra insurance coverage required in the event of renovations undertaken in the home?


Before starting any home renovation or improvement project it is important to consult with your homeowners insurance agent. This is because the existing insurance policy does not cover the value additions to the home and in the event of a loss, such coverage is not offered to the homeowners. For complete protection, it is advisable to update the coverage so as to include any improvements or additions made to the home. Such improvements or additions may include:

  • Remodeling or redesigning the kitchen or bathroom
  • Upgrading the roofing, flooring, countertop areas, and so on
  • Making additions to the house such as adding a bedroom or game room

Improvements or additions to the home are bound to increase the premium amounts so as to reflect the change in the value of the home. However, some changes also entitle the homeowners to obtain some discounts. The upgrading of electrical or heating systems, updating the security or alarm systems, allows the homeowner to qualify for certain discounts.

While undertaking renovations or improvements to the home, it is important to check that the contractors as well as subcontractors have insurance coverage. The workers compensation policies for people working under the contractors should also be verified. This protects the interests of the homeowners against liabilities in the event of workers sustaining any injuries during the renovation or home improvement project while of course being on their property.

The coverage information should be sought from contractors as well as sub-contractors and verified. In the event of insufficient or improper coverage, the liability of the insurance policy should be updated to cover expenses that may have to be incurred in case of a possible accident.