What Insurance Should You Review Before Renovating a Home?

Renovating your home can add value, improve functionality, and completely transform your space — but it can also change your insurance needs in ways many homeowners overlook.

Before starting any project, homeowners in Rhode Island should review their insurance to make sure they’re protected during and after the renovation.

Homeowners (Dwelling) Coverage

Your renovation may increase the value and rebuilding cost of your home.

Before starting, review:

• Whether your dwelling coverage reflects post-renovation value

• The cost of materials and labor

• Any structural changes being made

If your coverage isn’t updated, you could be underinsured after the project is complete.

Renovation or Builders Risk Coverage

For larger projects, your standard homeowners policy may not fully cover construction-related risks.

Depending on the scope, you may need:

• Builders risk insurance

• Renovation-specific coverage

This can help protect against:

• Damage during construction

• Theft of materials

• Certain risks tied to ongoing work

Liability Coverage

Renovations increase the number of people on your property — including contractors, workers, and inspectors.

You should review:

• Your liability coverage limits

• Potential exposure from on-site injuries

• Whether umbrella insurance makes sense

Even with insured contractors, liability can become complicated depending on the situation.

Contractor Insurance Verification

Before work begins, it’s important to confirm that your contractor carries proper insurance.

This typically includes:

• General liability insurance

• Workers’ compensation coverage

Requesting proof of coverage helps reduce your exposure if something goes wrong.

Coverage for Materials and Equipment

During renovations, materials and equipment may be stored on your property.

You should understand:

• Whether your policy covers these items

• If there are limits or exclusions

• Who is responsible if something is damaged or stolen

This is especially important for high-value materials.

Personal Property Coverage

Renovations often involve moving, storing, or replacing belongings.

Review:

• Whether your personal property coverage is sufficient

• If items are protected during construction

• Any temporary storage considerations

Damage during renovations may be treated differently than standard claims.

Ordinance or Law Coverage

If you’re updating an older home, renovations may trigger building code requirements.

This could include:

• Electrical upgrades

• Structural changes

• Safety improvements

Ordinance or law coverage can help cover these additional costs if they arise during a claim.

Coverage After the Renovation

Once the project is complete, your insurance should be updated to reflect:

• Increased home value

• New features (kitchen, bathroom, additions)

• Upgraded systems

Failing to update your policy after renovations is one of the most common ways homeowners become underinsured.

Why This Review Matters

Renovations don’t just change how your home looks — they change its risk profile.

Without the right insurance updates:

• Claims during construction could be denied

• New features may not be fully covered

• Liability exposure may increase

Protecting Your Investment

Renovating your home is an investment — and your insurance should protect that investment every step of the way.

For Rhode Island homeowners, reviewing coverage before, during, and after a renovation helps ensure you’re fully protected from unexpected setbacks.