Home Insurance During Renovation: Do You Need Builder's Risk?

California’s Department of Insurance advises discussing any modifications to your home that may increase or decrease its replacement cost with your agent or insurer, in writing, and keeping records of updates and renovations so the dwelling limit can be raised when appropriate.

Before work starts

Question	Why it matters
Will anyone live in the home during work?	An empty home can fall under vacancy restrictions
How large is the project?	Additions and gut remodels may need builder’s risk or a renovation policy
Who holds the materials until installed?	Theft of stored materials may be limited
Does the contractor carry liability and workers’ compensation?	Injuries and damage they cause should go to their insurance first
Will the work change the home’s value?	The dwelling limit should follow

Builder’s risk

Builder’s risk is property coverage for a structure under construction or major renovation, including materials on site, where offered. It is usually written for the project’s duration. Ask whether your homeowners insurer can endorse the policy for the project, or whether a separate policy is needed.

Contractor insurance

Ask for certificates of insurance showing the contractor’s general liability and, where applicable, workers’ compensation. Without them, an injured worker or damage to a neighbor’s property could become your problem.

After the work

• Update the dwelling limit to the new rebuilding cost. See dwelling coverage.
• Report upgrades. The Texas Department of Insurance lists discounts some insurers offer for new or renovated homes and roof upgrades.
• Keep records: permits, invoices and photos.

Code upgrades

If the project uncovers older wiring or other code issues, ask about ordinance or law coverage for future losses.

Short-term work vs. long projects

A quick bathroom remodel while you live in the home is different from months of work with the home empty. If the project means the home will be unoccupied or vacant, see vacant vs. unoccupied.

By phone

What happens when you call

A conversation lets the agent ask about your specific home instead of relying on a generic online estimate. There are no online forms to fill out.

1. 1

   Describe your home

   Share the address, size, age, construction, and roof or system updates. You do not need every detail to start.

2. 2

   Talk through coverage

   Explain what you want covered and ask about limits, deductibles, and exclusions that apply to your property.

3. 3

   Compare and decide

   Ask for the written quote terms and compare them before deciding. A call or a quote does not start coverage.

Sources and how this page was checked

Page updated October 23, 2026

This page is general information written from the public sources below. It has not been reviewed by an insurance company, attorney or licensed agent for your situation. Your policy form, endorsements, insurer and state rules decide what is covered.

Sources

• California Department of Insurance — Residential Insurance: Homeowners and Renters (Form 401, rev. January 2026)Retrieved and reviewed October 25, 2026 for Coverage A–F descriptions, special limits on valuables, renters and condo coverage, dwelling limits based on rebuilding cost rather than market value, actual cash value, guaranteed and limited/extended replacement cost, building code upgrade (ordinance or law) coverage, inflation guard, FAIR Plan, surplus lines and binder/quote definitions. California rules (notice periods, broker fees, CA-specific laws) are not generalized nationally.
• Texas Department of Insurance — Lower your home insurance cost by asking for discountsRetrieved and reviewed October 25, 2026 for common discount categories (security and fire systems, newer or renovated homes, roof materials and age, claim-free history, bundling, loyalty, smart devices, military or other groups) and the suggestion to shop at least every three years.
• Texas Department of Insurance — Home insurance guideRetrieved and reviewed October 14, 2026. Texas consumer guidance; used for general policy concepts, with Texas-specific examples identified rather than generalized.
• Texas Department of Insurance — Auto and home policy underwritingRetrieved and reviewed October 25, 2026 for underwriting factors, occupancy limits (vacant, unoccupied, seasonal, short-term rental) and the Texas 60-day post-issue underwriting window, which is labeled as Texas law.

Before you rely on this page

• Read your declarations page, policy form and every endorsement; they control over any summary.
• Ask the insurer or agent to confirm limits, deductibles and exclusions in writing before you buy or cancel coverage.
• For state rules, deadlines or complaints, check your state insurance department directly.