Remodeling Policy Term Changes to Protect Your Clients

May 9, 2023

Effective May 13, 2023, the 12-month policy term for remodeling policies with existing structure included and valued under $50,000 will no longer be available.

Background: Ultimately, this change is to safeguard your clients should a loss occur. After studying remodeling losses with a 12-month policy term, we discovered that many of the projects with the existing structure included and valued under $50,000 were consistently:

  • Not under construction during the entire policy term, or
  • Incorrectly secured for replacement of permanent property coverage (i.e. homeowners).

Exclusions and penalties: While there was no change to the coverage form, an existing clause often impacts remodeling projects of this value.

Under the ongoing construction activity clause as outlined in the HBIS 37 coverage form, policyholders will no longer have coverage for major perils (i.e. vandalism, theft and attempted theft, water damage, building glass damage and sprinkler leakage) or will pay a 15% penalty for other covered causes of loss when no “construction activity” has been performed within 60 consecutive days before the loss or damage occurs.

Policy terms summary: With that said, following is a summary of our revised remodeling policy terms effective May 13, 2023, for commercial and residential projects:


Project Value

Policy Term

Option to extend coverage upon underwriting approval

Remodeling only

Up to $75M

6, 9 and 12-months


Remodeling with existing structure

Under $50,000

6 and 9-months

Exception Only

Remodeling with existing structure

Over $50,000

6, 9 and 12-months


The long-term satisfaction of you and your clients is important to us. That’s why we believe taking proactive steps to help ensure the smoothest claims payment process down the road matters. Should you have questions, contact our dedicated team at (800) 800 – 3907.

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