Will Homeowner's Insurance Cover Damage Caused By Renovations?

Renovating a home can be an exciting endeavor for those involved. Changing a kitchen, living room, or dining space can allow homeowners to express themselves as they see fit and maximize the livability of their residential property. However, suppose a home is damaged during the renovation process. In that case, homeowners will want the damage to be covered by their insurance policy.

During the renovation process, a home can be damaged in a variety of ways, forcing costly repairs in addition to the renovation costs. Understanding who is accountable for the harm and what is and is not covered is crucial.

Construction Defects and Homeowners' Insurance

In certain instances, a homeowner's insurance policy will cover damage to a home, even if renovations cause it. This is because the majority of renovations pose a danger of property damage. Even if homeowner's coverage is available to cover your renovation damage, it only sometimes guarantees that your whole loss will be covered; it relies on the conditions of your policy. For instance, if renovation-related damage happens but is not specifically included in the insurance policy, it is possible that it will not be covered.

Common situations in which homeowner's insurance may not cover renovation-related repairs include the following:

• Upon completion of remodeling, a homeowner may dislike the work performed; nevertheless, this does not mean that an insurance policy covers the work.
• A homeowner can potentially pursue a claim with the contractor's insurer if an insurance policy does not cover work that was performed improperly and must be redone.
• The policy may cover the current home throughout a redesign, but it will only cover newly constructed rooms or extensions if they raise the property's value, necessitating an increase in the policy's limitations.
• If a homeowner performs their own improvements, it is possible that an existing insurance policy does not cover the work. When a homeowner serves as a contractor or project manager, they may be required to obtain builder's insurance.
• It is usual to leave a residential property vacant during renovations; nevertheless, if the residence remains vacant for 30 to 90 days, the homeowner's insurance policy may lapse.
• A homeowner's insurance policy may be voided if the required permits for improvements still need to be included.

When damage occurs to a house, it can be very difficult for the owner to deal with. Homeowners insurance is necessary to protect the value of your extremely valuable real estate investment. Despite the fact that homeowner's insurance is intended to protect the homeowner in the event of property loss, insurance companies frequently fail their clients by delaying, refusing, underpaying, or disputing the necessity for required house repairs.