Remodeling Insurance

Classifying A Project As New Construction Or Remodeling

How to Classify a Project as New Construction or Remodeling

Homeowners Insurance Coverage Comparison

How To Insure The Existing Structure For A Remodeling Project

How to Calculate Loss for Remodeling Projects

3 Scenarios When You Should Pitch Premises Liability

Overview

Remodeling

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12 min

When planning to renovate a home, residential structure, office building or even a multimillion-dollar commercial facility, clients face exposures not typically covered under a standard property insurance policy.

The Builders Risk Plan insured by Zurich is an inland marine policy for residential and commercial course of construction projects, including interior and exterior home remodeling and business property renovation. Designed for flexibility, our commercial and home remodeling insurance options provide contractors, homeowners, house flippers, business investors and others financial protection for simple upgrades to complex improvements valued up to $75 million.

For more on home remodeling insurance

For more on commercial remodeling insurance

FAQs

What type of renovations does remodeling insurance cover?

The types of renovations covered by remodeling insurance can vary from provider to provider. When researching options for your clients, be sure to understand and confirm what the provider and proposed policy cover. Clients can use the US Assure Builders Risk Plan insured by Zurich to cover basic home remodeling like replacing cabinets, as well as complex structural change renovations such as moving load-bearing walls or adding a story onto a residential home or commercial building. Consult with an underwriter for specific project details.

Who is the ideal client for this coverage?

The ideal client for any type of builders risk coverage, including those remodeling or renovating an existing structure, can be individuals or businesses with an insurable interest in the project. Homeowners frequently purchase coverage for remodeling. However, the client could also be a real estate investment company or a contractor conducting the project work.

What policy types are available?

Builders risk insurance for residential or commercial renovations must be purchased under a single project / structure policy form. Unlike residential and commercial new construction projects, the reporting form option is not available for renovations, due to the high risk of loss remodeling projects bear. So, a client with multiple renovation projects will have a separate policy for each project.

If the existing structure is covered elsewhere, is builders risk coverage available to cover just the renovation?

Builders risk policies can insure just the renovations, excluding existing structures. This is an important point because, although a client may have a homeowners insurance policy or other property policy already in place, renovations may be limited or specifically excluded under those policies. When clients purchase builders risk insurance for renovations, they can purchase coverage to complement what they already have protected under permanent property policies.

Project Examples

Basic remodel: changes to interior, e.g., replacement of fixtures, cabinets and flooring
Minor structural remodel: modifications to interior and exterior, e.g., doors, windows, roof replacement and ground floor additions
Major structural remodel: repair, replacement or removal of load-bearing walls or foundation of stories; adding new stories, stairways and elevators, etc.
Ineligible: Historical homes; projects involving the historic registry or that will be applying for historical status during renovation

Highlights

Rate, quote and issue online in minutes
Residential and commercial structures eligible
Option to insure the renovation value only or include coverage for the existing structure
Six-, nine- or 12-month policy terms, extensions available with underwriting approval; the 12-month policy term for remodeling policies with existing structure included and valued under $50,000 is not available
Coverage for theft of building materials or vandalism
Option to purchase higher sub-limits and additional coverage, including endorsements for green building, change orders and many more
Occupancy for a single-family dwelling allowed if the building is being remodeled
Occupancy for two-, three- or four-family dwellings allowed when less than 50% is leased or rented
Occupancy for commercial structures allowed when less than 75% of the square footage is leased or rented
If existing structure coverage is needed, renovation limit must be at least 20% of the existing structure value
Direct billing with premium payment installment options