Do You Need Builders Risk Insurance for Home Renovations?

Renovating your home is an exciting opportunity to enhance your living space, but it also often involves new and enhanced risks. With this in mind, adjusting and fortifying your insurance portfolio is likely a necessity. Specifically, if you’re planning to make physical alterations to your home, you should typically invest in builders risk insurance.

What Is Builders Risk Insurance?

Builders risk insurance, also known as course of construction insurance, is a type of policy designed to cover property and materials while a building is under construction or renovation. Unlike standard homeowners insurance, which may exclude damage related to major renovations, builders risk insurance can help protect against losses caused by various common incidents, such as fire, theft, vandalism and certain weather events that may occur during the project.

When Should You Get Coverage?

While not every home improvement requires builders risk coverage, many types of changes that alter the physical structure of the home or the property’s footprint likely will. Specifically, you may want to consider it if your renovation involves:

• Structural changes (e.g., adding rooms or removing walls)
• Major systems upgrades (e.g., electrical, plumbing and HVAC)
• Large-scale remodeling or additions
• Extended timelines where your home may be exposed to the elements

Some lenders or contractors may require that builders risk insurance be in place before work begins, especially for larger projects.

What Does Builders Risk Insurance Cover?

A builders risk policy can typically help financially protect:

• The existing structure and new construction
• Temporary structures (e.g., scaffolding and fences)
• Building materials stored on-site or in transit
• Fixtures and equipment used in the renovation
• Important documents (e.g., blueprints and contracts)

How Can I Get the Right Coverage?

If you’re planning a renovation, our team at TS Insurance can help you determine if builders risk insurance is right for your project and guide you through your coverage options.

Contact us today to discuss your needs and options with our experienced team.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.