Home Renovations and the Impact on Your Insurance

Posted: 6 years, 10 months ago

Updated: December 2025

Home Renovations & Your Insurance: What to Know in 2025

Planning a renovation in 2025—whether it’s rebuilding after a claim, adding more space, or finally updating that kitchen—is exciting. But every project, big or small, can affect your homeowners insurance.

At Top O’ Michigan, we want your coverage to keep up with your life. Renovations can help you qualify for new discounts, change the amount of protection you need, or in some cases, impact how a future claim is handled. Before you pick up a hammer (or open Pinterest), here’s what to understand.

Insurance Is a Conditional Contract—Here’s Why That Matters

A homeowners policy is a conditional contract, meaning:
If you do X, the insurance company will do Y (pay for covered losses as outlined in the policy).
So when you take on a home project, certain updates or risks may shift what your policy requires—or how it responds.

Whenever you plan a renovation, always give your insurance agent a heads-up. Here are some projects that should prompt a conversation:

• Adding a pool or hot tub

• Finishing a basement

• Building an addition

• Major kitchen or bathroom remodels

• Installing a wood stove or fireplace

• Upgrading electrical, plumbing, or roofing

• Adding smart-home security or water-detection systems

Some updates reduce risk (and may lower your premium). Others increase risk (meaning you may need extra liability or structural coverage). Your agent can walk you through the details so nothing is overlooked.

What To Do If You Experience a Loss During Renovations

Even with the best planning, unexpected damage can happen mid-project. If it does, here’s how to protect yourself and your claim.

1. Protect: Prevent Further Damage

Most homeowners policies require you to take reasonable steps to prevent the situation from getting worse. This is called mitigating the loss.

This includes:

• Making temporary repairs (like tarping a roof or shutting off a water supply)

• Protecting damaged items from weather or theft

• Keeping receipts for any emergency expenses

Important:
You are not required to make permanent repairs immediately. Stick to temporary protective measures until the adjuster gives guidance.

2. Report: Notify Your Agent Promptly

Once everyone is safe, contact your agent or insurance carrier as soon as possible. Be ready to share:

• Where the loss occurred

• A clear description of what happened

• What appears damaged or missing

• Any temporary measures you’ve taken

• Any expenses you’ve already incurred

Throughout the claim, you’ll need to cooperate with the adjuster—they may request invoices, photos, estimates, or other documentation. This helps keep your claim moving and protects you if any liability issues arise.

3. Repair: Get Estimates and Choose Your Contractor

Insurance companies do not schedule contractors or make repair appointments on your behalf, but they may offer a list of preferred vendors. You can use anyone you trust, as long as they’re qualified.

Important: Only the claims adjuster can authorize payment or approve repair work. Your Top O’ Michigan team will advocate for you, help you understand next steps, and communicate with the carrier— but we cannot approve repairs or issue payment without adjuster authorization.

Plan Ahead: The Key to Smooth Recoveries

Preparation makes all the difference. Before a loss happens, build a simple emergency plan for your household that includes:

• How to shut off utilities

• Family communication and meeting points

• A list of trusted contractors

• Where important documents are stored (digital copies are ideal)

• An annual review of your home inventory and photos

For business owners, a more robust continuity plan should include:

• Risk assessments

• Evacuation procedures

• Backup locations for operations

• Vendor and contractor lists

• Prioritized business functions and recovery timelines

We’re Here To Advocate for You

At Top O’ Michigan, we represent you—the insured. Our goal is simple: To get your claim settled fairly, efficiently, and accurately. We work to ensure the insurance company pays exactly what’s owed under the policy—no more, no less—so you can get back to normal as quickly as possible. If you’re planning a renovation or aren’t sure how your next project might affect your coverage, reach out. We’ll help you review your policy, update what’s needed, and make sure your protection evolves with your home.

 

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