Are you getting ready to undertake a new renovations project? If you are, you may be asking do I need home insurance for renovations. That is not only a legitimate question but it’s also one that’s very difficult to answer the same way for everyone. That’s because it depends on so many factors such as your current insurance policy, the dollar amount of your renovation, and the requirements of your individual state or local municipality. Let’s explore this question in a few different ways and then you can decide for yourself whether you need to get home insurance for your renovation.

When you ask the question do I need home insurance for renovations, it also depends on how you interpret the word ‘need’, If you interpret that as meaning required, then the answer is usually no. When the word ‘need’ is interpreted in that question as meaning should, then the answer is almost always yes. 

So, you ‘should’ definitely make sure renovations are covered by your insurance policy or you add extra coverage that includes it. This applies no matter how you interpret the word ‘need’ in the above question. 

Does the Renovation Leave You Underinsured?

It may be a case where if you do a very expensive renovation that you want to make sure you have extra coverage for it. This is true of renovations that cost more than several thousands of dollars. Otherwise, if you so suffer a loss due to a fire or other event, you may find that you don’t have insurance coverage for the new renovation. That would mean that all the money you spent on your renovation was pretty much for nothing.

Did You Take Out Financing for Your New Renovation?

Just like you are required to have insurance in place at all times when you have a mortgage, so too may you be required to have extra insurance in place to cover a home improvement loan amount. You can find this out by reading through your renovation financing contract or by calling the finance company directly. It’s better to be safe than sorry with the small amount of extra money in premiums that you will pay for renovation coverage.

Be Safe About It

Why take a chance when it comes to answering the question do I need home insurance for renovations? There is a very simple way to find out if in your situation you need additional insurance coverage for your new renovation. That’s by directly asking the agent that handles your homeowner’s insurance policy. They will give you some straight answer on this and probably give you some options on how best to insure your home renovation project. Most insurance personnel will highly recommend that you at least sit down and talk to them about your new renovation in more detail. That certainly is never a bad idea.

Call Us for Your Home Renovation Needs

When wondering whether your home insurance policy covers your home renovation needs, more often than not, the answer will be given to you by your insurance provider or agent. You can simply get the information from them. 

Some home renovations are not necessarily for beautification or aesthetic purposes. Sometimes it is done to prevent further deterioration of your home caused by damage or natural wear and tear. These are the typical cases covered by insurance policies. 

In any case, it is best to hire a licensed custom home builder that can provide topnotch workmanship and use high-quality materials so that any payment you make is worth it. If you are in Orlando, Apopka, Winter Park, and nearby areas, then Posada Custom Homes is the company to call. You may reach us at 407-740-7707 to get a free quote.