Renovating? Why Your Homeowners Insurance Isn’t Enough

Homeowners insurance will keep you covered for many important aspects of owning property. But unfortunately, it does come with coverage limitations too. Let’s look at some scenarios where your homeowners insurance isn’t enough. 

We’ll also tell you which policy will protect your home during renovations. Last but not least, we’ll tell you where to get the best buy Builder’s Risk insurance.

Homeowners insurance limits

Every policy has its limitations. Homeowners insurance is no exception. If you have made changes to your home, especially if your square footage has increased, your existing insurance policy does not automatically factor in the new changes or additions. This is why it is essential to have your insurance agent assess your policy regularly.

If something does go wrong and you need to make a claim, and your coverage’s outdated, you will pay the additional amount out of pocket to cover the added feature.  But that’s after the renovation.

Covered during the renovation?

When your property undergoes renovation or remodeling, there are more significant risks involved, and it is vital you understand what your policy covers and what it doesn’t.

Homeowners insurance coverage

A Homeowners insurance policy will cover expenses and rebuild, for example, fire or hurricane damage. It also provides coverage for:

• Rebuilding the structure of your home
• Personal belongings at a rate of around 50-70% of the insured value of the structure
• Liability protection against injuries, or damage to others property at your expense, starting at about $100,000
• ALE, or additional living expenses, covers living costs while rebuilding your house, including the cost of rent lost if the property used for rental.

However, your home will not have this coverage during the course of a renovation.

Additional coverage requirements for renovating

Builder’s Risk Insurance provides coverage over this period. Your home will be vulnerable, and you’ll want protection for events that could result in financial loss, such as:

• Protection against theft and vandalism
• Cleaning up and removal of excess debris
• Water damage coverage from problems with sewers and drains during renovation

If you are doing the project management or construction yourself, you will also appreciate these benefits: 

• Protection of tools and materials in transit to and from your property
• Coverage for scaffolding and temporary structures built on your property

Renovating? Get the right coverage!

When you decide to make alterations to your home, always talk to your insurance provider about your current policy before you go ahead with any renovations.

When you renovate, your property’s value generally increases, and your current policy may now not offer sufficient coverage in the case of damage or loss.

Homeowners insurance policies often do not cover expenses and claims during a renovation period. In this case, looking into the best Builder’s Risk Insurance to buy’s highly recommended.

Once they’re completed, look into re-evaluating the value of your property and increasing your insurance premium to match.

Best buy Builder’s Risk insurance

When you make changes or alterations to your property that are considered to be renovations, you are at risk for various claims that aren’t covered in your Homeowners Insurance policy.

By buying Builder’s Risk, you provide coverage for potential loss or damage to your property during the renovation period.

Contact Builder’s Risk at 877 960 0221

Invest in the right coverage for your project before you get started. This way your property remains protected. 

If you have Homeowners Insurance and aren’t sure whether your policy covers the renovations you are planning, talk to us about the best buy Builder’s Risk insurance available.