Why You Must Update Insurance After a Renovation
A renovation is a happy milestone and an insurance event most people forget. Add square footage or upgrade finishes, and the cost to rebuild your home goes up — but your coverage limit doesn't move unless you update it.
What goes wrong
Say you finish a major kitchen and addition. Your home now costs significantly more to rebuild, but your dwelling limit still reflects the pre-renovation home. If you have a major loss, the payout is based on the old, lower limit — and you cover the difference. We've seen this leave homeowners tens of thousands of dollars short.
What to update after a renovation
- Dwelling limit — raise it to reflect the new reconstruction cost.
- The reconstruction estimate — have your broker re-run it with the changes.
- New high-value features — built-ins, custom finishes, upgraded systems.
- Contents — new furnishings and appliances may warrant higher contents coverage.
When to call your broker
Before and after the project ideally — some carriers want to know about significant work in progress, and the coverage should be updated as soon as the work is complete.
Frequently asked questions
Do I need to tell my insurer about a renovation? Yes. A renovation changes your home's rebuild cost; failing to update coverage can leave you under-insured and result in a partial payout.
What happens if I don't update coverage after remodeling? A claim may be settled against your old, lower limit, leaving you to pay the difference on the added value.
When should I update — during or after the renovation? Notify your broker before significant work and update the dwelling limit as soon as it's complete.
More in this series: Extended vs Guaranteed Replacement Cost · What Is High-Value Home Insurance — and Who Needs It?
Related: Coverage Gap Calculator → · The Equity-Wealthy Household’s Insurance Guide →
Insuring a high-value home is rarely just about the structure; Insuring a Waterfront Home in Newport Shores, Bellevue and How to Insure an Engagement Ring round out the picture.
Trella Insurance is an independent brokerage in Bellevue, WA. Try the coverage gap calculator or request a free review.
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