A kitchen remodel, a room addition or a new ADU can add comfort and value to your home. A renovation also changes your insurance risk. Open walls, tools and materials on site, workers coming and going, and sometimes an empty house all raise the chance of a claim. Many homeowners don't call their insurer until something goes wrong, and by then it may be too late to fix a coverage gap. This checklist covers what to do before, during and after a project.
Before the project starts
1. Tell your insurer or broker about the project
Read your policy's conditions. Many homeowners policies require you to report material changes to the property, and some limit coverage while the home is vacant or under major construction. Call your broker with the scope, budget, timeline and whether you'll live in the home during the work. Some insurers can handle a small project with a simple note on the file. Larger projects may need an endorsement or a separate policy.
2. Check the contractor's license
In California, the Contractors State License Board (CSLB) licenses contractors. You can check a license, its classification, bond and workers' compensation status, and any public complaints using the CSLB license check. Other states have similar boards. Hiring an unlicensed contractor can leave you exposed if a worker is hurt or the work is defective.
3. Ask for certificates of insurance
Ask the contractor for certificates of insurance that show:
- General liability, which covers damage the contractor causes to your property or injuries to others.
- Workers' compensation, which covers the contractor's employees. If a contractor's worker is hurt on your property and the contractor has no workers' comp, you may face a claim. The CSLB website explains contractors' workers' compensation requirements.
- Commercial auto, for vehicles used on the job.
Ask to be named as an additional insured on the contractor's liability policy, and confirm the policy dates cover the whole project. See our guide to certificate holders vs. additional insureds.
4. Review the contract
A good contract spells out who is responsible for insurance, permits, cleanup, damage to existing structures and warranty work. Ask your attorney to review large contracts.
5. Get permits
Unpermitted work can cause problems with claims, resale and future coverage. Your contractor or architect should pull permits with your local building department.
6. Consider builder's risk for large projects
Homeowners policies are built for finished homes, not construction sites. For major remodels, additions or new ADUs, a builder's risk policy can cover the structure under construction and the materials on site against covered losses like fire and theft. Either the homeowner or the contractor may buy it. Make sure someone does. See our builder's risk guide.
During the project
7. Watch vacancy rules
If you move out during the renovation, your home may count as vacant or unoccupied under your policy. Many policies limit coverage, for example for vandalism or glass breakage, after a set period of vacancy. Ask your broker whether you need a vacancy endorsement or a vacant home policy. See our vacant home insurance guide.
8. Protect the site
- Lock up tools and materials, and ask the contractor to do the same.
- Make sure the site is fenced or secured when no one is working.
- Keep extinguishers handy. Hot work like soldering and torch-down roofing is a common cause of fires.
- Shut off water to areas where plumbing is being changed, and check for leaks after work ends each day.
- Protect floors and belongings from dust and debris.
9. Track additional living expenses
If a covered loss makes your home unlivable, additional living expense (ALE) coverage can help with temporary housing. ALE generally doesn't pay for moving out simply because of a planned renovation. Budget for that cost yourself.
10. Keep records
Save the contract, permits, invoices, receipts, photos and lien releases. These records help if you have a claim and when you update your coverage after the project.
11. Protect yourself against liens
In California, subcontractors and suppliers who aren't paid may have the right to record a mechanics lien on your property, even if you paid your general contractor. The CSLB explains how to protect yourself, including asking for lien releases. This is a contract and payment issue, not an insurance one, but it's part of protecting your investment.
After the project
12. Update your dwelling coverage
A renovation usually increases the cost to rebuild your home. Tell your broker about:
- Square footage added
- Upgraded finishes such as custom cabinets or stone counters
- New systems such as solar, batteries, HVAC, plumbing or electrical. See our home solar and battery insurance guide.
- A new ADU or detached structure. See our ADU insurance guide.
If your dwelling limit doesn't keep up, you could be underinsured after a major loss. Ask about extended replacement cost coverage.
13. Ask about discounts
Some upgrades can lead to discounts or better eligibility with some insurers, such as a new roof, updated wiring, plumbing or HVAC, monitored alarms, water leak detection systems and wildfire hardening. See our wildfire mitigation guide.
14. Update your home inventory
Add new appliances, fixtures and furnishings to your home inventory.
15. Understand contractor warranties
Defective workmanship is generally excluded from homeowners policies, although resulting damage may be covered depending on the policy. Keep the contractor's warranty and contact information in case problems show up later.
DIY projects
If you're doing the work yourself:
- Pull permits where required.
- Hire licensed professionals for electrical, gas and structural work.
- Remember that friends who help and get hurt could bring liability claims. Review your liability limits and consider an umbrella policy.
- Some injuries to people you pay to help may raise workers' compensation questions. Ask your broker.
Home renovation insurance checklist
- ☐ Tell your broker the scope, budget and timeline
- ☐ Check the contractor's license and workers' comp status
- ☐ Collect certificates of insurance and ask to be named as an additional insured
- ☐ Get permits
- ☐ Decide who buys builder's risk for large projects
- ☐ Check vacancy rules if you're moving out
- ☐ Secure the site and watch for fire and water risks
- ☐ Keep contracts, invoices, photos and lien releases
- ☐ Update dwelling coverage and your home inventory afterward
Planning a project? Contact Alishahi Insurance or call (877) 711-4545 before work begins.
Frequently asked questions
Do I need to tell my insurance company about a renovation?
Usually you should. Many policies require you to report material changes, and some limit coverage during major construction or vacancy. Tell your broker before work starts.
Does homeowners insurance cover damage caused by my contractor?
Often the contractor's liability insurance should respond first. Ask for certificates of insurance, and ask to be named as an additional insured.
What is builder's risk insurance?
Coverage for a structure under construction and the materials on site against covered losses like fire and theft. It's often used for large remodels, additions and new builds.
Should I raise my coverage after a remodel?
Usually. Renovations often increase the cost to rebuild, so update your dwelling coverage to avoid being underinsured.
How do I check a contractor's license in California?
Use the Contractors State License Board's online license check, which shows license status, bonding and workers' compensation information.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.