Home Insurance for Fixer-Uppers and Renovation Projects

You found the deal of the century — a dated colonial with good bones, a manageable price tag, and about 40 weekends of work ahead of you. Congratulations. Now comes the part nobody warns you about: your standard homeowners policy might not actually cover the house while you're fixing it up.

This isn't a technicality buried in fine print. It's a real gap that catches homeowners off guard every year. Whether you're doing a modest kitchen refresh or gutting the whole place down to studs, here's what you need to know about protecting yourself during a renovation.

Why Standard Home Insurance Falls Short During Renovations

Most homeowners policies are written for occupied, finished homes. The second you start a major renovation — especially one that involves contractors, structural changes, or leaving the house vacant for stretches — you can run into coverage problems.

A few scenarios that commonly trip people up:

• Vacancy clauses. Many policies reduce or void coverage if the home is unoccupied for 30–60 days. If you're living elsewhere while the renovation is happening, that clock starts ticking fast.
• Construction exclusions. Some policies specifically exclude losses that occur during construction or renovation. A fire that starts while contractors are on-site might be treated differently than one that starts on an ordinary Tuesday.
• Increased liability. Contractors, subcontractors, and the occasional curious neighbor wandering through an open construction site — your liability exposure goes up significantly during a project.
• Materials left on-site. That pallet of hardwood flooring sitting in your garage? The new windows stacked in the driveway? Standard policies often have limits on uninstalled materials.

None of this means you're uninsurable during a renovation. It just means you need to pay attention to what type of coverage you have — and whether it actually fits your situation.

The Fixer-Upper Problem: Insuring a Home That Isn't "Move-In Ready"

Buying a fixer-upper adds another layer of complexity. Before the renovation even starts, you may struggle to get standard homeowners insurance at all.

Insurers assess risk based on the current condition of the home. A house with a compromised roof, outdated knob-and-tube wiring, galvanized pipes, or a cracked foundation is a higher risk — and some carriers will flat-out decline to write a policy on it, or only offer limited coverage until repairs are made.

If you're in this situation, here are your options:

1. Ask about a conditional policy. Some insurers will write a policy with the understanding that specific repairs will be completed within a set timeframe (often 30–90 days). You get coverage, but you're on the clock to fix the flagged issues.

2. Look into a "dwelling under construction" policy. This is a form of coverage designed specifically for homes being built or undergoing major renovation. It typically covers the structure as it's being built, materials on-site, and liability — but it's usually for the structure only, not personal property.

3. Consider a builder's risk policy. Builder's risk (sometimes called "course of construction" insurance) is the gold standard for significant renovation projects. It covers the building and materials against fire, theft, vandalism, and certain weather events while work is underway. Once the project is done, you transition to a standard homeowners policy.

Builder's Risk Insurance: Who Needs It and What It Covers

If you're doing a cosmetic update — new paint, updated fixtures, refinished floors — you probably don't need builder's risk. Your existing homeowners policy, combined with a heads-up call to your insurer, may be enough.

But if you're doing anything that involves:

• Structural changes (removing walls, adding square footage)
• Roof replacement
• Major electrical, plumbing, or HVAC work
• Leaving the home unoccupied for extended periods
• A project that will take several months or longer

...then builder's risk is worth a serious look.

What it typically covers:

• The structure itself during construction
• Materials and supplies on-site (and sometimes in transit)
• Temporary structures like scaffolding
• Vandalism, theft, fire, wind, and hail

What it typically doesn't cover:

• Contractor negligence or faulty workmanship
• Floods and earthquakes (you'd need separate policies for those)
• Tools and equipment owned by contractors (they should have their own coverage)
• Injuries to workers (covered under workers' comp)

Builder's risk policies are usually written for a specific term — often 3, 6, or 12 months — and can sometimes be extended if the project runs long.

What to Do Before the First Hammer Swings

Before any work starts, run through this checklist:

Call your insurer. Tell them exactly what you're planning. Ask whether your current policy covers the renovation period, whether there are any vacancy exclusions to worry about, and whether they recommend adding endorsements or switching to a different policy type. Document this conversation.

Verify your contractor's insurance. Every contractor you hire should carry general liability insurance and workers' compensation. Ask for certificates of insurance before they start. If a worker is injured on your property and the contractor doesn't have workers' comp, you could be on the hook.

Keep receipts for materials. If something gets stolen or damaged, you'll need documentation to support a claim. Take photos, save receipts, and log big-ticket purchases.

Reassess your coverage limits. Adding a bathroom, finishing a basement, or doing a full kitchen remodel increases your home's value. Make sure your dwelling coverage reflects the post-renovation value, not just what you paid for the place.

Ask about an "installation floater." This is a specific endorsement that covers materials and equipment that haven't been installed yet. Useful if you're storing expensive fixtures or appliances before they go in.

After the Renovation: Don't Forget to Update Your Policy

This one gets overlooked more than you'd think. You finish the project, the dust settles, and life moves on. But if you added significant square footage, upgraded systems, or otherwise increased your home's replacement value, your coverage limits need to keep up.

Underinsurance is one of the most common problems homeowners face after a major renovation — they update everything except their insurance policy. If you have a loss and your dwelling coverage doesn't reflect the true cost to rebuild, you'll be covering the gap out of pocket.

Schedule a policy review once the project wraps. It takes maybe 20 minutes and can save you from a very bad day down the road.

Getting the Right Coverage Doesn't Have to Be Complicated

Fixer-uppers are a legitimate path to building equity and creating a home that's actually yours. But the insurance side of a renovation project has enough moving parts that it's worth getting a real conversation — not just a quick online quote.

Truvo works with homeowners at every stage, including those mid-project or buying into a property that needs work. If you're not sure what coverage you need right now, or you want to make sure you're not sitting on a gap, get a quote and talk through your situation. A five-minute conversation now is a lot easier than figuring it out after something goes wrong.