Spring Dreams, Winter Schemes: Updating Your Insurance Before Your Spring Renovation

In the third week of February, the “Spring Itch” begins. Many homeowners spend this week finalizing contracts for kitchen remodels, deck additions, or basement finishing projects slated for March and April. However, there is a dangerous “Insurance Void” that occurs during a renovation that most homeowners don’t realize exists until it’s too late.

1. The “Occupancy” and “Work” Exclusions

Most standard Home Insurance policies have clauses that limit or exclude coverage if the home is under major construction. If a contractor accidentally starts a fire or a thief steals $10,000 worth of uninstalled cabinetry, your standard policy might deny the claim because the “risk” has changed.

2. Builder’s Risk and Liability

Before the first hammer swings, you need a Builder’s Risk Endorsement. This specifically covers the home during construction, including the materials sitting in your driveway. Furthermore, you must ensure your contractor has General Liability and Workers’ Comp. If they are uninsured and get hurt on your property, your insurance could be on the hook for their medical bills.