TL;DR: An addition, major remodel, new roof, or new detached structure can change how much insurance your home needs, and sometimes what coverage you need while the work is underway. Tell your agent before work starts, find out whether the project needs builder’s risk, check your contractor’s certificate of insurance, and ask for a new replacement cost estimate when the job is done. Text 828.759.5154 or email info@brevardinsurance.com with the details and we’ll tell you what to address before construction begins.
Two years after Helene, a lot of Transylvania and Henderson County houses are still under construction. Some of that is storm repair. Some of it is the addition or the kitchen that got postponed while the storm work went first. Either way, fall is when WNC contractors push to close out exterior work before the weather turns, so a lot of projects start in the next few weeks.
Don’t wait until the work is finished to think about insurance. Here’s the short version.
1. Tell your agent before work starts
Send your agent four things:
- What you’re doing
- The expected start and completion dates
- The contract value
- Whether you’ll keep living in the home
That gives your agent a chance to work out whether your current homeowners policy can handle the project or whether you need additional coverage.
If you’re moving out during construction, say so. Vacancy and occupancy can affect coverage, and the rules vary by policy.
Confirm your permits are in place when the work requires them, and keep copies with your policy documents.
2. Find out if you need builder’s risk
Builder’s risk covers property while it’s under construction. It can include the structure, materials on site, and sometimes materials in transit.
You may need it for projects such as:
- Major additions
- New detached structures
- Extensive renovations
- Projects that substantially open or alter the home’s exterior
A smaller interior renovation in a home you’re still occupying may be handled differently.
If your general contractor says they provide builder’s risk, ask your agent to review what is actually covered and who is insured under the policy. Ask specifically whether you are listed as an insured on it.
We write builder’s risk in this office. If you’re managing the project yourself, send us the contract value and the construction timeline.
3. Check your contractor’s insurance
Before work begins, request a current certificate of insurance showing general liability and, when applicable, workers’ compensation.
“When applicable” is doing real work in that sentence. Requirements vary by the size and structure of the business doing the work. Don’t assume every contractor working on your property is covered. Ask.
Ask about subcontractors too. A general contractor’s certificate does not always cover the subs the GC hires. And ask to be listed as a certificate holder, so you’re notified if the policy cancels partway through the project.
A renovation also puts more people and more vehicles on your property than usual. If you’ve been meaning to look at umbrella coverage, this is a reasonable time to ask about it. [Internal link: post #12, when umbrella actually pays out.]
4. Update your dwelling limit
A renovation can increase the cost to rebuild your home.
Your homeowners policy’s automatic inflation adjustment may account for rising construction costs, but it doesn’t know that you added 400 square feet, upgraded a kitchen, or built a new addition.
When the project is complete, ask your agent to run a new replacement cost estimate.
The dwelling limit is also the number several other limits are calculated from, including other structures, personal property, and additional living expense. Reviewing those at the same time keeps the whole policy in step with the house.
Ordinance or law coverage is worth asking about while you’re there. It applies to code upgrades required during a rebuild, and renovation work often triggers code compliance on whatever part of the house you touch. In an older Brevard or Rosman home, that’s where it shows up.
5. Pay attention to materials during construction
Don’t assume cabinets, appliances, lumber, fixtures, or other building materials sitting at the job site are covered the same way as your belongings inside a finished home.
Homeowners policies can limit or exclude theft coverage for materials associated with a dwelling under construction. Builder’s risk or additional coverage may be needed.
Ask before expensive materials are delivered, not after they’re sitting in the driveway.
6. Replacing the roof? Tell your agent
A new roof can affect how a carrier views your home and, depending on the company and roofing material, may affect eligibility, coverage, or premium.
When the work is complete, send your agent:
- Final invoice
- Completion date
- Roofing material
- Wind or impact rating, if applicable
Roof condition has been a live factor in Western North Carolina renewals, so send this in when the work wraps rather than waiting for your renewal to come around. [Internal link: post #09, non-renewals.]
7. Adding an ADU or rental space? That’s a separate conversation
A detached studio, converted garage, in-law suite, or accessory dwelling unit can create both property and liability issues.
The biggest question is how it will be used. Family occupancy, long-term rental, and short-term rental can all be treated differently by an insurance company. If anyone will be paying to stay there, tell your agent before they move in or the property is listed for rent.
Also check the limit for other structures. The automatic limit on your policy may not be enough to rebuild a finished ADU.
Your renovation insurance checklist
Before work starts
- Tell your agent about the project.
- Provide the scope, timeline, contract value, and occupancy plans.
- Confirm whether builder’s risk is needed.
- Get your contractor’s certificate of insurance.
- Confirm permits are in place when required.
- Photograph the home before demolition.
During construction
- Tell your agent if you move out.
- Keep expensive materials secure.
- Save contracts, invoices, and receipts.
- Report major changes to the scope or cost.
When the project is finished
- Send your agent the final project cost.
- Request an updated replacement cost estimate.
- Review your dwelling, other structures, ordinance or law, and personal property limits.
- Send documentation for a new roof.
- Review coverage for any new ADU or rental exposure.
Starting a project in the next 90 days?
Text 828.759.5154 or email info@brevardinsurance.com with the details of your project. We’ll review it and let you know what insurance issues need to be addressed before construction begins.
