Renovations are the #1 cause of homeowners being underinsured. You spend $40,000 on a kitchen remodel but never update your insurance. Then a fire destroys the kitchen. Your policy pays based on the OLD kitchen value — leaving you $30,000+ short.
Before the Renovation
- Call your agent: Describe the project scope and estimated cost
- Update replacement cost: Increase dwelling coverage to reflect the post-renovation value
- Verify contractor insurance: Get a certificate of insurance showing general liability ($1M+) and workers comp
- Ask about builder's risk: For major projects ($50K+), you may need additional coverage during construction
- Check your policy for construction exclusions: Some policies limit coverage during renovations
During the Renovation
- Document everything: Photos and videos of work in progress
- Keep receipts: Materials, labor, permits — all documentation
- Monitor contractor work: Ensure proper permits are pulled
- Watch for hazards: Open walls, exposed wiring, and construction debris increase risk
- Liability awareness: Workers and delivery people on your property = increased liability exposure
After the Renovation
- Update your policy: Final cost may differ from estimates — adjust dwelling coverage
- Update your home inventory: Document new appliances, fixtures, and finishes
- Keep all documentation: Contracts, receipts, permits, photos, warranty info
- Ask about discounts: New roof, updated electrical/plumbing, smart home features may reduce your premium
Renovations That Can LOWER Your Premium
- New roof: 10-25% savings (especially impact-resistant shingles)
- Updated electrical: Replacing old wiring reduces fire risk
- Updated plumbing: Replacing galvanized or polybutylene pipes reduces water damage risk
- New HVAC: Modern systems are less likely to cause fires or water damage
- Smart home/security: Water leak sensors, monitored alarm, smart smoke detectors: 5-20%
- Wind mitigation (coastal): Hurricane straps, impact windows: 10-40% in Florida
Renovations That Increase Your Premium
- Swimming pool: Significant liability increase
- Trampoline: Many carriers exclude or surcharge
- Wood-burning stove/fireplace: Increased fire risk
- Home office with client visits: May need business endorsement
- Short-term rental conversion: Requires different policy type entirely
Bottom line: Tell your agent about every renovation — before it starts. Increased replacement cost means increased coverage. Some renovations save you money on insurance. All of them need to be reflected in your policy to ensure you're properly covered.