Buying a home that needs renovations can be an exciting opportunity to create your dream space or invest in long-term value. But before you start tearing down walls or replacing the roof, there’s one crucial step that shouldn’t be overlooked: working with an insurance agent.
Here’s why having a knowledgeable insurance agent on your side is a must when buying a home you plan to renovate:
1. Standard Homeowners Insurance Might Not Cover Renovations
Many people assume a standard homeowners policy will protect them during renovations—but that’s often not the case. If your home will be vacant during the work, or if you’re making major structural changes, your current policy may exclude coverage or require additional endorsements. An insurance agent can help you find the right coverage to protect your investment during the renovation period.
2. You May Need a Builder’s Risk or Renovation Policy
Depending on the scope of the work, you may need a specialized policy—such as builder’s risk insurance—to cover materials, equipment, and liability during construction. Your agent can determine whether this or another renovation-focused policy is appropriate based on your plans.
3. Protect Yourself Against Liability Risks
Construction zones come with increased liability exposure. If a contractor or even a friend helping out gets hurt on your property, you could be held responsible. Your agent will make sure you have adequate liability coverage during the renovation period.
4. Ensure Contractors Have the Right Coverage
A good insurance agent doesn’t just look out for your policy—they also help you verify that your contractors carry proper liability insurance and workers’ compensation. This can save you from serious financial risk if something goes wrong during the renovation.
5. Coverage Gaps Can Be Costly
Without the right policy in place, fire, theft, or storm damage during renovations could lead to significant out-of-pocket costs. An insurance agent helps you avoid gaps in coverage so that your investment is fully protected from day one.
6. They’ll Help You Adjust Coverage Once the Work Is Done
Once renovations are complete, your home’s value and insurance needs may change. Your agent will help reassess and adjust your coverage to reflect your updated home and ensure you’re not underinsured.
In Summary:
Renovating a home can be exciting—but also risky if you don’t have the right insurance in place. A trusted insurance agent helps you navigate the complexities, avoid costly coverage gaps, and protect your home from purchase to project completion.
Need help insuring your renovation project?
Reach out to one of our experienced agents today to make sure you’re covered every step of the way.
