The same homeowners insurance you’ve carried for years probably covers small updates you make week to week. Things like repainting a room, hanging new drapes, or updating the cabinet doors in the kitchen. These don’t typically change the replacement cost or risk profile of your home and likely don’t affect your insurance.
However, a standard Connecticut homeowners policy is priced and underwritten for a finished, occupied house. An active renovation can change your property enough that coverage gaps open up.
What a Standard Policy Is Built to Cover
In a standard homeowners policy, an insurance company (the carrier) determines the right amount of coverage using specialized software and underwriting tools. These estimate the replacement cost of the home as it exists when the policy goes into effect. That typically covers the structure, the contents inside it, and outbuildings like sheds and garages, as well as liability tied to the property.
When a homeowner makes changes that either add real value to the home or alter its risk profile, the limit set at the policy’s effective date may no longer match the home’s actual replacement value or the cost to insure its risks. For example, a swimming pool is considered an attractive nuisance that is known to carry risks that can add a line item to an insurance policy.
A second issue is what a homeowners policy assumes about occupancy and activity on the property. A standard homeowners policy is underwritten around a house that’s lived in and maintained in its finished state, and it may restrict coverage if a dwelling is vacant for more than 30 or 60 days (depending on the policy).
Renovations also often mean exposed framing and electrical work, open trenches, and crews of contractors on site, which raise liability concerns that traditional homeowners policies aren’t designed to cover.
Where Policy Gaps Actually Open
During a renovation, how the building is used (and by whom) changes in ways that are important for how you’ll insure it. For example, many homeowners plan to live off-site during major renovations. Most standard homeowners policies, however, restrict or exclude coverage for vandalism, glass breakage, and water damage once a home sits vacant for too long.
Homeowners who won’t be in the house for the remodel should check with their broker or agent to see how long their home can be vacant before it creates a problem with their policy. Most policies set the limit at 30 or 60 days.
Building materials also need to be properly insured. Before features such as cabinetry, appliances, lumber, fixtures, and wiring are installed, they typically count as neither personal property nor a part of the structure. A pallet of cabinetry sitting in the garage, for example, doesn’t have the same coverage as the cabinets already installed in your kitchen, and its theft could be an expensive financial loss for the homeowner.
Standard forms also typically exclude damage caused by faulty or unworkmanlike construction. During a remodel, a contractor may make a decision that they never intend to be permanent, but it has permanent consequences. For example, a roof intentionally left incomplete or unsupported temporarily might suffer storm damage. While the homeowner’s policy may cover resulting damage to the interior, the cost of the roof may be a loss the homeowner has to accept.
What Builders Risk and Course of Construction Coverage Fill
A builders risk policy, sometimes written as a dwelling under construction endorsement for smaller projects, may cover the structure during the renovation or build period against fire, theft, vandalism, and weather-related loss. These are often the exclusions from a standard homeowners policy, and contractors and lenders typically ask for proof of this coverage before a major renovation begins.
Pricing is typically set as a percentage of the completed project value rather than a flat premium. Industry estimates commonly cite a spread of 1%–5%, depending on project scope, location, and materials. On a $150,000 addition, that could mean anywhere from roughly $1,500 to $7,500 for the construction period. The actual quote depends on the carrier and the specifics of the project.
Builders risk doesn’t include personal liability coverage. Depending on the project, teams of different subcontractors may be on the premises in situations that are more dangerous than what is typically found in a home, including things like exposed nails or stairways without railing. Best practice is to check whether the property’s existing coverage matches that increased activity during the build.
The Connecticut Piece Most Homeowners Skip Past
Under Connecticut’s Home Improvement Act, General Stat. Section 20-418 and 20-429 , anyone performing work (totaling more than $1,000 during 12 consecutive months) on an existing private residence must register with the state as a Home Improvement Contractor and use a written contract that meets specific statutory disclosures before work begins.
That registration typically requires the contractor to carry $20,000 in general liability coverage and may not reflect what a serious construction-related loss actually costs. Twenty thousand dollars doesn’t go far if a fire spreads past the addition and into the existing structure. A homeowner who checks a contractor’s registration and stops there has confirmed the contractor is legally allowed to do the work, not that a loss from that work is likely to be covered.
Confirm Your Renovation Coverage With JMG Before Work Begins
If a renovation, addition, or major remodel is on your calendar, the time to review builders risk, course of construction, and liability coverage is before the permit gets pulled. Contact JMG Insurance Corp to review your current homeowners policy against your project’s scope and confirm what could be added to keep your home and assets protected.
