Does homeowners insurance cover renovations?

Homeowners insurance doesn't pay for actual home renovation projects, but it may cover injuries that you're liable for or thefts that occur during your home renovation. Your policy may also pay to repair or replace damage to your renovation from a covered peril, up to your dwelling coverage limit. Remember to let your insurer or agent know about significant home renovations to ensure you have the right amount of dwelling coverage.

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Will homeowners insurance cover damage caused by contractors or poor-quality work?

Homeowners insurance won't pay to fix work completed by contractors if you're unhappy with the results. It also won't pay to repair poor-quality work or mistakes contractors made during a renovation project. However, it may help if a contractor causes a fire or damages your property. Be sure to hire licensed and insured contractors that can cover any unforeseen accidents and claims.

Will homeowners insurance cover injuries to a contractor

If you're found liable for someone's injury sustained while they were working on your home, your personal liability coverage may pay for the resulting medical bills, up to your coverage limits.

Can home improvement or renovation projects impact your insurance rate?

Some home improvement projects may lower your insurance rate, especially if they make your home safer and reduce the risk of a claim. Roof replacements may earn you a lower rate because the age and material of your roof help determine your homeowners insurance rate.

Other projects, like additions and renovations, may increase the value of your home and result in a higher insurance rate to cover the increased cost of repairing or rebuilding your home.

Renovations that may lower your homeowners insurance rate

  • Adding a home security system may reduce the risk of theft
  • Upgrading your wiring could help reduce the risk of fire
  • Replacing your roof may reduce the risk of hail and wind damage
  • Reinforcing your foundation may reduce your risk for flooding

Renovations that may increase your homeowners insurance rate

Do you need to let your insurance company know if doing any renovations?

Always give your insurer a heads up about any major home improvement projects that may impact your insurance premium. Regardless of whether your rate changes, notifying your insurer helps you maintain adequate coverage to repair or rebuild your home with your new addition, room renovation, or other improvements factored in. Plus, you may earn homeowner insurance discounts for certain upgrades.

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Please note: The above is meant as general information to help you understand the different aspects of insurance. Read our editorial standards for Answers content. This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provisions, limitations, or exclusions expressly stated in any insurance policy. Descriptions of all coverages and other features are necessarily brief; in order to fully understand the coverages and other features of a specific insurance policy, we encourage you to read the applicable policy and/or speak to an insurance representative. Coverages and other features vary between insurers, vary by state, and are not available in all states. Whether an accident or other loss is covered is subject to the terms and conditions of the actual insurance policy or policies involved in the claim. References to average or typical premiums, amounts of losses, deductibles, costs of coverages/repair, etc., are illustrative and may not apply to your situation. We are not responsible for the content of any third-party sites linked from this page.

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