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Home Insurance During Renovations: Understanding Coverage for Your Project

Renovating your home is exciting! But before the demolition begins and the paintbrushes fly, it’s crucial to understand how your homeowners insurance handles renovations. While it offers robust protection for your home, coverage during renovations can have some surprising twists. Let’s navigate this together and ensure your dream project doesn’t turn into an insurance nightmare.

Where to Find Out What’s Covered?

Your best first step is to grab your homeowners insurance policy and give it a thorough read. Pay close attention to the sections detailing “covered perils” – these are the specific events your insurance covers, such as fire, theft, or weather damage.

What’s Covered During a Home Renovation?

Standard homeowners insurance can offer some protection during renovations, but it’s important to understand the limitations. The coverage includes:

  • Sudden and Accidental Damage: Imagine a plumber accidentally bursts a pipe, causing water damage. In this scenario, your insurance might cover repairs to bring your home back to its pre-renovation state.
  • Theft of Materials: If building materials stored on-site are stolen, some policies might offer limited coverage for replacement costs.

What’s Not Covered?

While some coverage exists, there are significant gaps to be aware of. They are:

  • Poor Workmanship: If your contractor makes a mistake or installs something incorrectly, unfortunately, homeowners insurance won’t cover the cost of fixing it. This is why ensuring your contractor has proper licensing and liability insurance is absolutely essential.
  • Costs Associated with Upgrades: Let’s say your renovation involves replacing your builder-grade cabinets with high-end custom ones. If a fire breaks out, your insurance will only cover the cost of replacing the original cabinets, not the upgraded ones.
  • Damage Caused by Faulty Materials: If faulty materials damage your home during renovations, your first recourse might be against the manufacturer or supplier. However, some policies might offer limited coverage depending on the situation.

Damage to Your Neighbor’s Property

Renovations can get messy, and accidents happen. If a renovation project damages your neighbor’s property, your liability coverage under your homeowners insurance might kick in. This can help cover repairs to your neighbor’s home for incidents like a fire that spreads or damage caused by debris falling onto their property.

Importance of Homeowners Insurance Coverage in Home Renovations

Even with limitations, homeowners insurance plays a vital role during renovations. Here’s why:

  • Relief: Knowing you have some basic coverage in place allows you to focus on the exciting aspects of your project with less worry.
  • Protection from the Unexpected: Accidents happen, and even the most experienced contractors can make mistakes.
  • Financial Safety Net: If a covered event occurs, your insurance can help cover repairs, preventing a financial setback.

McCarty Insurance Agency: Your Reliable Partner for Renovation and Insurance Needs

At McCarty Insurance Agency, we understand that every renovation project is unique. Our experienced agents can review your existing policy, discuss your renovation plans, and help you assess if any additional coverage might be beneficial. Contact us today to ensure your renovation journey is a smooth and secure one. Call us at (559) 324-1421 for further assistance.


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