There’s nothing quite like the excitement of transforming your home. Whether it’s adding a new wing, gutting the kitchen, or building that dream sunroom, renovations can improve your property’s value, function, and appeal. But while you’re busy picking paint colors and tile samples, one thing many homeowners overlook is their insurance coverage — and trust me, that’s a big mistake.
I get calls all the time from homeowners who are knee-deep in a project and suddenly realize they have no idea if their insurance covers them. Many ask about Builders Risk policies, and while it’s not something my firm handles, I wanted to write this article to give you some clear, no-nonsense guidance. Because whether it’s my area of business or not, I believe people deserve solid advice when it comes to protecting their property.
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Does Your Homeowners Insurance Cover You During Renovations?
The truth is, your standard homeowners insurance policy might offer limited coverage during a renovation — or none at all, depending on the scope of the work. Policies are designed to protect completed homes, not active construction sites.
While some homeowners policies may continue to offer protection against certain perils like fire or vandalism during renovations, there are often exclusions or limitations for damage caused by construction activities. Additionally, liability protection might not extend to injuries or property damage that occur as a result of the work being done.
Key things to watch for in your homeowners policy:
• Exclusions for homes under renovation
• Limitations on coverage for theft of building materials
• Reduced liability coverage during construction
• Potential coverage suspension if the home becomes vacant during the project
• Requirements for you to notify your insurance company before starting work
Important note: If you’re planning a renovation, your first call should be to the insurance agent who services your homeowners insurance policy. They can review your current coverage, explain any limitations, and help you secure the appropriate protection for your renovation project.
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What If You’re Not Living in the Home During Renovations?
This is a critical issue many homeowners overlook. If you move out of your home for an extended period — typically 30 or 60 days, depending on your policy — your homeowners insurance may reduce or even suspend certain coverages.
Most standard homeowners policies contain a vacancy clause. If the home is considered vacant (meaning no one is living there), some types of protection may no longer apply, including:
• Vandalism and malicious mischief
• Glass breakage
• Water damage from plumbing or heating systems
• Theft of personal property and building materials
In some cases, your liability coverage might also be limited or suspended while the home is unoccupied during construction.
That’s why it’s essential to speak to your homeowners insurance agent before moving out for a renovation. Your agent can review your policy’s conditions and exclusions related to vacancy and advise you whether you need to adjust your coverage, add a vacancy permit endorsement, or consider a Builders Risk policy during the renovation.
Failing to address this can leave you exposed to serious uninsured losses if something goes wrong while your home is empty and under construction.
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Will You Need a Special Endorsement or Builders Risk Policy?
If your insurer doesn’t offer a suitable endorsement — or if your project is large in scope or leaves the property vacant — you may need a Builders Risk insurance policy.
Builders Risk covers:
• The structure under renovation
• Building materials on-site, in transit, or temporarily stored elsewhere
• Certain types of property damage (fire, theft, vandalism, wind, etc.)
It typically does not cover:
• Liability for injuries to workers or visitors
• Faulty workmanship
• Flood and earthquake damage (unless endorsed)
A lot of people call me at BGES Group looking for Builders Risk coverage. And while it’s not our cup of tea — we specialize in contractor and business insurance — I wanted to write this article to give homeowners guidance so they know where to turn. Your insurance agent who handles your homeowners policy is the person you should call for this type of coverage.
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What If You Act as Your Own General Contractor?
If you decide to manage your renovation and hire subcontractors directly, you’re not just responsible for making sure the work gets done — you’re also legally and financially liable for the site.
You should absolutely carry:
• Builders Risk Insurance
To protect your home and building materials.
• General Liability Insurance
This protects you if someone (like a neighbor, delivery driver, or vendor) gets injured on your property.
• Workers’ Compensation Insurance (or verify your subs have it)
If any subcontractor or laborer gets injured, you could be held liable if they don’t have their own coverage.
Your homeowners insurance agent can help you coordinate Builders Risk and personal liability coverage for this scenario.
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What If You Hire a General Contractor?
If you’re hiring a licensed GC, it makes things simpler — but you still need to protect yourself. Don’t assume your GC’s coverage will automatically protect you.
Here’s what you should require:
• General Liability Insurance: Minimum of $1 million per occurrence, $2 million aggregate.
• Workers’ Compensation Insurance: Covering all employees and subcontractors.
• Builders Risk Insurance: Clarify whether the GC carries it, or if you’ll need to.
• Certificate of Insurance (COI):
Make sure it’s current, lists you as an additional insured, and covers the project duration.
These are conversations your homeowners insurance agent can assist with, and they can advise whether additional personal liability coverage makes sense during the project.
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Why I’m Writing This
Like I mentioned earlier, a lot of people call me asking for Builders Risk insurance. It’s not something we write at BGES Group — we focus on business and contractor insurance — but after hearing so much confusion from homeowners, I wanted to provide some clear guidance.
At the end of the day, your homeowners insurance agent is the expert you should be speaking to about coverage for your home, renovations, and personal liability during construction, especially if the home will be vacant for any period of time.
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Who Is BGES Group and What Do We Do?
At BGES Group, we don’t write Builders Risk or homeowners policies — but we are experts in business, contractor, and construction-related insurance throughout New York and the tri-state area.
We help contractors, business owners, and property managers navigate:
• General Liability Insurance
• Workers’ Compensation Insurance
• Excess Liability Coverage
• Contractor Bonds and Risk Management Solutions
If you’re a contractor or business owner looking for an experienced team that understands the ins and outs of construction insurance, BGES Group is your go-to resource.
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Contact BGES Group
📞 Gary Wallach
📱 914-806-5853
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Final Word
Renovating your home is an exciting investment, but it comes with risks most homeowners never anticipate. The right insurance strategy protects your property, your finances, and your peace of mind.
Before you pick up a hammer, hire a crew, or move out during a renovation, call the insurance agent who services your homeowners policy. They’ll help you find the right coverage and keep your home — and your renovation — properly protected.
And if you’re a contractor, property manager, or business owner looking for expert insurance advice — that’s where BGES Group comes in.