Do I Need Special Insurance for a Home Renovation?

What Most Homeowners Should Know Before Construction Starts

Home renovations are exciting — but they often come with insurance questions, especially when the project involves structural changes, major costs, or a lender.

One of the most common questions we hear is:
“Do I need a separate insurance policy while my home is under renovation?”

In many cases, the answer is no — as long as the project is properly insured.

When Your Homeowners Policy Is Usually Enough

For common renovation projects — such as a kitchen remodel, removal of a load-bearing wall, adding an island, new appliances, or relocating a pantry — a standard homeowners insurance policy is typically designed to respond, provided a few key conditions are met.

When:

• The home remains owner-occupied

• The renovation is temporary

• The work is being performed by a licensed and insured contractor

…a separate builder’s risk policy is generally not required.

There’s also usually no need to back-date coverage, even if work has already begun, as long as the project was insured correctly from the start.

Why the Contractor’s Insurance Matters

Your contractor’s insurance plays a critical role during any renovation. Their coverage should be primary for claims arising from their work.

Before construction starts, homeowners should always:

• Obtain a Certificate of Insurance from the contractor confirming active coverage, including:

  • General Liability

  • Workers’ Compensation

  • Business Auto (if applicable)

• Request to be listed as an Additional Insured on the contractor’s General Liability policy for the duration of the project

These steps help protect you if there’s property damage, bodily injury, or a dispute related to the contractor’s work.

What About the Mortgage Company?

If your lender requests it, your homeowners policy can be updated to include a mortgagee clause reflecting the bank’s interest during the renovation. This is a routine endorsement and does not change your coverage.

When to Revisit Coverage

While most renovations fit comfortably within a standard homeowners policy, it’s important to check in if anything changes, including:

• Project scope or cost

• Timeline

• Contractor or subcontractors

A quick conversation before changes are made can prevent coverage gaps later.

The Bottom Line

Most home renovations do not require special insurance — but they do require proper coordination between your homeowners policy and your contractor’s coverage.

If you’re planning a renovation or already mid-project, it’s always worth a quick review. A few proactive steps now can save a lot of stress later.