Thinking about a DIY home improvement project? Maybe a new kitchen or bathroom makeover?
If project excites you, you’re not alone. The Home Improvement Research Institute (HIRI)
says do-it-yourselfers complete two-thirds of home improvement projects
— and spend less than those who depend solely on contractors. While
saving money is satisfying, the sense of accomplishment DIYers feel is
But before you pick up a hammer or grab a paintbrush, you’ll need
to do some homework. As you draw plans, budget, purchase materials and
secure permits, you also need to think about home insurance. Your agent can help you assess the unexpected risks of your project.
Here are five common renovation projects that may require additional insurance:
Maybe you’ve been dreaming of a new kitchen, one with quartz
countertops and Wi-Fi-enabled appliances. Kitchen remodels can add
convenience and significant value to your home, but there are a few
- Depending on your level of experience, you may need the help of
a plumber or electrician. Make sure the contractors you hire are bonded
and insured. Do they carry liability insurance? Ask to see their
certificate of coverage.
- Check with your agent to see if you should increase your
homeowners coverage. If your renovation substantially increases the
value of your house, you could be underinsured if you haven’t raised
your limits. Generally, you need enough insurance to replace 80% of your
- Will friends be helping you? Ask your agent about adding no-fault coverage or raising your medical expenses coverage.
You have visions of a soaking tub, new vanities and imported marble tile. Sounds delightful, but keep these points in mind:
- You may need a plumber to help you move a water line or drain.
Bear in mind that water damage caused by your faulty workmanship won’t
be covered by your homeowners policy. On the other hand, if you use a
contractor, their business insurance should cover the damage to your home.
- Will that expensive marble be sitting in your driveway after
it’s delivered? Costly materials have a way of walking away from a job
site. Check to see if your policy covers theft or damage to your
You’ve decided to convert a spare bedroom into a home office. It’s
an easy renovation, but here are some insurance considerations:
- Most homeowners policies only provide limited coverage (up to
about $2,500) for office equipment. If you have items that exceed that
amount, you’ll need additional coverage. Your agent can recommend some
- If you’re doing work for your firm at home, make sure you’re
covered by the company’s business and workers’ compensation policies. If
you’re self-employed, you may need a separate business policy,
especially if clients visit your house.
You’ve always wanted a room off the kitchen to take advantage of
the morning sun. Sunrooms can provide enjoyment year-round, but you do
need to keep a few things in mind:
- Talk to your agent about adding a new room to your homeowners
policy. You may be able to get a discount if you install
energy-efficient windows or heavy-duty locks on an exterior door.
- Is the project insured against severe weather? Theft or vandalism? You may need a builders risk policy.
You’re planning to create extra living space in the basement for
your growing family. You’ve contracted to have a French drain and a sump
pump installed to prevent water from leaking in. You’ve also decided to
live in a friend’s house while you work on the project.
- If your house is unoccupied during construction, you may need vacant home insurance.
- Be sure to get a warranty on the French drain. Flooding isn’t
covered by homeowners insurance. However, you can add water backup
coverage to your policy to pay for damage if your sump pump fails.
- Game room? Home theater? Extra bathroom? You may need to
increase the limits on your homeowners policy. On the other hand,
upgrading old wiring or installing a security system could lower your
Written by Trusted Choice