When is builder’s risk insurance necessary?

About home renovation and property insurance

Builder’s Risk is a type of property insurance used during construction or a major renovation. This type of insurance can be an excellent layer of protection for the homeowner.

But where is the line between major gutting and minor remodel? What if you just want to replace kitchen cabinets or retile the bathroom?

If you already have homeowner’s insurance, unless you have exclusions in your policy, it will probably cover any damage. Cosmetic (non-structural) should be covered, but adding on or removing walls will probably not be covered.

It’s best to not assume anything. If you have any doubts at all, be sure to contact your insurance agent before the work begins.