First Home Remodel? Look Out for Gaps in Your Coverage

Know the Gaps

If you’ve watched any home makeover shows, you may think major renovations are no big thing. Talented designers effortlessly transform the dullest of houses into unbelievable construction masterpieces within weeks (with a few predictable hiccups along the way!)

In real-life though, remodeling your home can be an expensive and time-consuming task.

For many, it can be worth the investment. But, if you’re a first-time home buyer or undertaking a project for the first time, you’re bound to make some common remodeling mistakes that may end up costing you even more time and money like:

Remember, if you plan to remodel your home, take the time to update your insurance coverage, too! But why? Well, a major home renovation may create costly gaps in your coverage:

Renovations and Home Insurance Gaps

Planning a bathroom makeover? How about adding a brand new deck? Giving your kitchen a facelift?

That’s great! Home renovation projects not only add appeal to your home, they can drive up your home’s resale value too.

Before you start a project though, talk to your insurance agent and dust off your homeowners insurance policy. That’s because after you’re done remodeling, you may need increased coverage because:

  • The market value of your home may be substantially higher than it was before the renovation.
  • Your existing policy may not have the appropriate type or amount of coverage to pay for the cost to rebuild your home in case of loss.

Renovations and Liability Gaps

Also, keep in mind that mishaps happen all the time during the construction process!

Let’s say you hired a construction crew and someone gets injured on the job and files a lawsuit against you? Usually, there’s nothing to worry about as a reputable contractor will carry workers' compensation coverage.

But some people may decide to act as their own general contractor and instead hire subcontractors, friends or relatives to do the work. That’s a risky situation (one we don’t recommend) because if any of those people don’t have adequate coverage, or any coverage, while working in your home, you run the risk of a lawsuit and liability exposure.

That’s why it’s important to make sure you have liability coverage in place for this type of exposure to help protect you against the unexpected.

Contact your Farmers agent before the project begins so you’re not left paying out of pocket if your home or building supplies get damaged or destroyed, or someone gets into an accident! Your agent can help you:


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