A renovation changes what your house would cost to rebuild. A new kitchen, an extra bathroom or better finishes can all raise that figure, and a policy written for the house as it was may not cover the house as it is now. Most insurers expect to hear about significant changes, and a short call once the work is finished is usually all it takes.
Why the rebuild figure matters
A homeowners policy normally sets a limit for the structure itself, often called dwelling coverage, based on an estimate of what it would cost to rebuild. That is not the same as what the house would sell for. If the estimate was made before your renovation, ask your insurer to review it with the new rooms and finishes included.
What to tell your insurer
- Which rooms changed and what was added, such as floor area, a bathroom, a new roof or new windows.
- Systems that were replaced or upgraded: wiring, plumbing, heating or the water heater.
- Finishes that cost more to replace, such as stone counters, custom cabinets or hardwood floors.
- The date the work was finished, and whether permits were issued and signed off.
Questions worth asking
- Does my dwelling limit still reflect what it would cost to rebuild the house as it is now?
- Does my policy pay replacement cost or actual cash value?
- Do the new roof, wiring or plumbing make any difference to my premium?
- How does my policy treat water damage, and does that apply to the new bathroom?
When to call
Ideally twice: before the work starts, to ask whether the project affects your cover, and again when it is finished, to update the policy. Have your records to hand for the second call; our article on keeping renovation records lists what to gather.
Where to read more
- Homeowners insurance basicsNational Association of Insurance Commissioners
- Making a home inventoryNational Association of Insurance Commissioners
- Your state insurance departmentDirectory kept by the NAIC
- Flood insuranceFederal Emergency Management Agency
We are a renovation company, not an insurance company or an insurance agent. We do not sell insurance or recommend policies, and only your own insurer can tell you what your policy covers.