Renovating This Summer? Insurance Questions to Ask First
Across Maine, spring and summer are renovation season. Warmer weather and longer days make it the ideal time for homeowners to update kitchens, replace roofs, add decks, or take on larger projects like additions or full remodels.
While most people focus on contractors, materials, and construction timelines, insurance is rarely part of the early planning process. But renovations can change the risk profile of a home, and in some cases coverage may need to be reviewed before work begins.
Renovations Change the Risk Profile
Even relatively small projects can alter the exposure associated with a property.
Adding square footage, upgrading finishes, or modifying the structure can increase the replacement cost of the home. Larger renovations can also introduce temporary risks while construction is underway.
When the structure or value of a property changes, it’s often worth confirming that coverage reflects those updates.
Contractor Liability Matters
When contractors are working on a property, it’s important to understand where responsibility lies if something goes wrong.
Professional contractors should carry their own liability insurance, and homeowners often request proof of coverage before work begins. This typically comes in the form of a certificate of insurance.
Confirming that contractors are properly insured can help ensure that if an accident occurs during construction, their coverage may respond first.
Vacancy During Construction
Some renovation projects require homeowners to temporarily move out while work is underway. In other cases, a property may sit vacant between construction phases.
Certain insurance policies place limits on coverage when a home is vacant for extended periods. If a renovation involves leaving the property unoccupied for a time, it may be worth reviewing how the policy applies during that period.
Updating Replacement Cost
One of the most common insurance issues following a renovation is underinsurance.
Improvements such as additions, upgraded materials, or structural changes can increase the cost to rebuild a home after a loss. If coverage limits are not updated, a property could be insured for less than its true replacement value.
Reviewing replacement cost after renovations helps ensure the home remains properly protected.
When Builder’s Risk May Apply
Some projects go beyond typical renovations and move into full structural changes or new construction.
In those cases, builder’s risk coverage may be used to protect the structure and materials while construction is underway. This type of policy is designed specifically for properties during the building phase and typically transitions to a standard homeowners policy once the project is complete.
Because every project is different, reviewing coverage before construction begins can help determine whether adjustments are needed.
A Conversation Worth Having
Renovations can be an exciting way to improve a home’s comfort, functionality, and long-term value. But as a property changes, insurance coverage should evolve with it.
If you’re planning a renovation this season anywhere in Maine, it may be worth reviewing how your current policy applies before work begins.
Our team is available to walk through your coverage and discuss any updates that may help protect your home during the process. To start the conversation, call 207.282.7568, and we’ll review your options together.