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Protecting Your Remodel Investment: Homeowners Insurance Essentials

Sep 19, 2023 | Home Remodeling

Congratulations on your upcoming remodel! Home renovations can transform your living space and enhance your home’s value. However, amidst the excitement, it’s crucial not to overlook the importance of protecting your investment through adequate homeowners insurance coverage. In this article, we’ll explore the key essentials of homeowners insurance, providing you with valuable insights and information to help you make informed decisions! So, let’s dive in and discover how you can safeguard your remodel investment.

Understanding Homeowners Insurance: The Basics

Before we delve into the specifics, let’s start by understanding the fundamentals of homeowners insurance. This type of policy provides financial protection in case of damage to your home or belongings due to unforeseen events, such as fire, theft, storms, or vandalism. Here are some key essentials to keep in mind:

Primary Coverage

Homeowners insurance typically includes coverage for both your home’s structure (dwelling coverage) and your personal belongings (personal property coverage). It aims to repair or replace damaged property up to your policy’s limits.

Liability Protection

Besides covering property damage, homeowners insurance also offers liability protection. This means that if someone gets injured on your property or you accidentally cause damage to someone else’s property, your insurance can help cover legal expenses, medical bills, and potential lawsuits.

Assessing Your Remodel Investment: Policy Review

As you embark on your home remodel journey, it’s essential to assess your existing homeowners insurance policy. Consider the following aspects:

Coverage Limits

Evaluate your policy’s dwelling coverage limit, which should reflect the estimated cost to rebuild your home in the event of a total loss. Since renovations can increase your home’s value, it may be necessary to adjust your coverage limits to adequately protect your remodel investment.

Additional Structures

If your remodel involves adding structures like a sunroom, garage, or pool, ensure that your policy includes coverage for these new additions. Otherwise, you might need to update your policy to reflect the increased value.

Increase in Personal Property Value

During the renovation process, you may acquire new furniture, electronics, or appliances. To safeguard your investment fully, consider adjusting your policy’s personal property coverage to account for the increased value of these items.

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Photo by Scott Graham on Unsplash

Navigating Coverage During Renovations

While your home is undergoing renovations, it’s important to understand how your homeowners insurance coverage may be affected. Consider the following:

Vacancy Clause

Some insurance policies may have a vacancy clause stating that the coverage may be reduced or even suspended if the home is unoccupied for an extended period. If you plan to move out temporarily during renovations, discuss this with your insurance provider to ensure uninterrupted coverage.

Builder’s Risk Insurance

Discuss with your contractor the need for builder’s risk insurance. This specific policy can provide coverage for damages and losses that occur during construction. It’s crucial to clarify who is responsible for obtaining this coverage, whether it’s you or the contractor.


Inform your insurance provider about the upcoming renovation project, including details and timelines. This helps ensure that you have continuous coverage throughout the remodeling process and can address any additional insurance requirements.

Protecting Your Valuables: Additional Coverage Options

Certain valuables may require additional coverage beyond what standard homeowners insurance offers. Consider these options to protect your prized possessions:

Jewelry, Art, or Collectibles

If you own high-value items like jewelry, art, or collectibles, you may need to purchase extra coverage known as “scheduled personal property” or “rider” to adequately protect them. These policies provide coverage beyond the standard personal property limits.

Flood Insurance

Standard homeowners insurance typically does not cover flood damage. If your remodeled home is located in a flood-prone area, obtaining separate flood insurance is essential. Consult with your insurance provider to understand the scope of flood coverage available to you.

Home Business

If your remodel includes a designated workspace for a home-based business, note that standard homeowners insurance may not cover business-related losses. In such cases, exploring additional coverage options like home-based business insurance or an endorsement to your existing policy is advisable.


Can homeowners insurance cover my living expenses during renovations?

 Yes, some policies may provide “loss of use” coverage, which can help cover additional living expenses if your home becomes temporarily uninhabitable during renovations. Review your policy or consult with your insurance provider to understand the available options.

Will my premium increase after a home remodel?

While it varies depending on the extent of renovations and the increased value of your home, it’s possible that your premium might increase. To assess the impact on your insurance rate, reach out to your provider and discuss the details of your remodel.

What should I do if I discover existing damage during a remodel?

If you uncover pre-existing damage during your remodel, contact your insurance provider as soon as possible. They can assess the situation and guide you on the appropriate steps to take.


As you embark on your home remodel journey, remember that protecting your investment goes hand in hand with homeowners insurance. Take the time to review your policy, assess the coverage limits, and discuss any necessary adjustments or additional coverage options with your insurance provider. By understanding the essentials of homeowners insurance and making informed decisions, you’ll ensure that your remodel investment is safeguarded, giving you the peace of mind you deserve. Happy remodeling and happy insurance shopping!

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