🛠️ Home Renovation Risks: What Every Homeowner Should Know

Thinking about a kitchen makeover, adding that backyard patio, or finally building your dream master suite? Renovations are exciting, but they come with insurance considerations you can’t afford to overlook.

Before you swing that first hammer in Georgetown, Round Rock, Cedar Park, Austin, New Braunfels, San Marcos, or San Antonio, let’s break down home renovation risks and how your homeowners insurance plays a starring role in protecting your investment.

🏡 1. Renovations Can Change Your Insurance Needs

Renovations — big or small — can change your home’s replacement cost. That’s insurance lingo for how much it would cost to rebuild your home if something catastrophic happens. Whether you’re finishing a basement, expanding square footage, or renovating the kitchen with top-of-the-line finishes, your current coverage limits might not cut it anymore.

That means if you don’t update your policy, you could be underinsured during a loss. Imagine completing that new dream kitchen — then having to pay out of pocket because your insurance was still based on your home’s pre-renovation value. Yikes.

🤕 2. Growing Liability Risks (Yes, You Can Be on the Hook)

Standard homeowners insurance typically includes personal liability coverage, but renovations can shift your liability exposure in ways you might not expect.

For example:

• Adding a swimming pool or hot tub increases the chance someone gets injured on your property.
• Larger construction sites on your property could expose visitors or workers to hazards.

In situations like these, you might need to enhance liability limits or consider an umbrella policy for added peace of mind.

🧱 3. Temporary Insurance Needs: Builders Risk & Endorsements

A standard homeowners policy may not cover:

• Damage during construction (e.g., fire, theft, vandalism)
• Materials stored on-site
• Tools and equipment
• Structural changes before project completion

That’s where builder’s risk insurance or renovation endorsements become critical. They protect your home — and the renovation itself — while work is underway.

👷 4. Know Your Contractor’s Insurance

Just as important as your coverage: verify your contractor is properly insured. Ask for:

• General liability insurance
• Workers’ compensation coverage
• Proof of insurance certificates

If a worker gets injured or property gets damaged during the renovation — and the contractor isn’t insured — you could be on the hook. Don’t let that be the plot twist of your renovation story.

📅 5. Vacant Homes During Renovation Have Special Rules

Temporarily moving out while renovation work is happening? Standard policies often have vacancy clauses, meaning:

• Your coverage could be limited or suspended if your home is unoccupied for a set period.
• The insurer may classify the property as a construction site — which carries higher risk.

If the crew takes over and the family moves out, give us a call — we’ll walk you through how vacancy impacts your coverage.

📣 Pro Tip: Always Notify Your Insurance Agent Before Construction Begins

This is the big one. Your agent is like your renovation co-pilot — loop them in early. If you don’t disclose your project, you could face:

• Denied claims
• Coverage gaps
• Higher deductibles
• Underinsurance when you need it most

Renovations change your home’s risk profile — insurance should change with it.

🏁 Final Takeaway

Renovating your Central Texas home is a major life milestone — and a big financial investment. Smart homeowners plan for insurance adjustments before the demo crew arrives.

From updating replacement cost to considering builder’s risk and liability enhancements, proactive planning protects your project, your budget, and your peace of mind.

👉 Got questions about how your renovation affects your homeowners insurance? Contact Dowd Insurance Agency today — we’re here to help you build with confidence.