Best Home Insurance for Renovations in 2024 (Find the Top 10 Companies Here!)

The top pick for the best home insurance for renovations is Progressive, closely followed by USAA and State Farm, offering competitive rates tailored for extensive home modifications. These providers excel not just in pricing but also in delivering comprehensive coverage options specifically designed for renovation needs.

These companies stands out with the most attractive rates and discounts, making it the best choice for homeowners looking to balance cost and quality protection.

Our Top 10 Company Picks: Best Home Insurance for Renovations

Explores these companies’ offerings, ensuring you have the information needed to make a well-informed decision on insuring your renovated home.

Protecting your home doesn’t have to be expensive. Enter your ZIP code above into our free tool to find affordable homeowners insurance today.

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#1 – Progressive: Top Overall Pick

Pros

• Competitive Pricing: Progressive offers competitive pricing on home insurance, which can be particularly attractive for homeowners looking for value for money. Learn more about their services in our detailed Progressive insurance review & ratings.
• Discounts and Incentives: They provide multiple discounts, including multi-policy and claims-free discounts, which can significantly lower premiums for qualifying customers.
• Online Tools: Progressive is known for its robust online tools and mobile app, making managing policies and filing claims straightforward and user-friendly.

Cons

• Customer Service: Some users report variability in customer service experiences, which can affect satisfaction during claims processing.
• Policy Limitations: There may be certain limitations in coverage options, especially concerning high-value items or unique home features that require additional riders or endorsements.

#2 – USAA: Best for Military Families

Pros

• Tailored to Military Members: USAA caters specifically to military members and their families, offering services and coverage that are finely tuned to their needs.
• Comprehensive Coverage: They provide comprehensive coverage options that include many benefits as standard, which other insurers might offer as additional cover.
• High Customer Satisfaction: In our USAA insurance review & ratings, we consistently find high scores in customer satisfaction surveys, showcasing strong customer service and claims handling.

Cons

• Eligibility Restrictions: USAA’s services are only available to military members, veterans, and their families, limiting accessibility for the general public.
• Cost: Sometimes, USAA’s premiums can be higher than some competitors, although the coverage is generally more comprehensive.

#3 – State Farm: Best for Local Agent Network

Pros

• Widespread Availability: State Farm’s extensive network means they are available nationwide, offering consistent coverage across various states.
• Agent Network: State Farm’s network of local agents provides personalized and tailored advice, enhancing its reputation. Discover more in our State Farm insurance review & ratings.
• Financial Stability: State Farm has strong financial health, ensuring they can handle claims even under significant demands.

Cons

• Pricing Variability: Premiums can vary significantly depending on location and individual circumstances, potentially making them less competitive in some areas.
• Less Flexibility in Policies: Some customers may find fewer options for customization compared to other insurers, which could be a drawback for those with specific needs.

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#4 – Allstate: Best for Comprehensive Educational Resources

Pros

• Multiple Discount Options: Allstate offers a variety of discounts, including new homebuyer and multi-policy discounts, which can reduce the overall cost of insurance.
• Educational Resources: Provides extensive educational materials to help homeowners understand their coverage and prepare for risks.
• Claim Satisfaction Guarantee: Our Allstate insurance review & ratings highlight the company’s claim satisfaction guarantee, offering reassurance about the quality of their service.

Cons

• Higher Premiums: Allstate’s rates can be on the higher side compared to some other insurers, especially for customers without discounts.
• Varied Customer Service Experiences: Customer reviews suggest that experiences can vary significantly depending on the region and specific agents.

#5 – Nationwide: Best for Loss Forgiveness Policies

Pros

• Broad Coverage Options: Nationwide offers a wide range of coverage options, including unique coverages that might not be available from other insurers.
• Loss Forgiveness: For details on how Nationwide prevents premium increases after your first claim, see our Nationwide insurance review & ratings.
• Brand New Belongings Coverage: They offer ‘Brand New Belongings’ coverage, which replaces damaged items with new ones rather than providing the depreciated value.

Cons

• Price Points: Nationwide’s premiums can be higher than average, particularly for more comprehensive plans.
• Complex Policies: Some customers may find their policy options complex, making it hard to choose the right coverage without assistance.

#6 – Travelers: Best for Green Home Discounts

Pros

• Green Home Discounts: Offers discounts for certified green homes and for using green materials for repairs, appealing to environmentally conscious homeowners.
• Extensive Add-on Coverage: Explore how Travelers provides a range of add-on coverages for customized policies in our Travelers insurance review & ratings.
• Financial Strength: Travelers is known for its financial stability, which ensures reliability in paying out claims.

Cons

• Higher Rates for Basic Policies: Basic policies can be more expensive compared to competitors, which might deter those needing simple coverage.
• Customer Service Issues: There are some reports of less satisfactory customer service experiences, particularly in handling claims.

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#7 – Liberty Mutual: Best for Inflation Protection

Pros

• Personal Property Replacement: Liberty Mutual offers full replacement cost for personal property, not just the depreciated value.
• Inflation Protection: Automatically adjusts your coverage limits to keep up with inflation, ensuring your coverage is always adequate.
• Discounts for Safety Features: Learn about discounts for safety-equipped homes in our comprehensive Liberty Mutual review & ratings.

Cons

• Inconsistent Customer Service: Customer service quality can vary significantly by location and agent.
• Policy Cost: Premiums can be high, especially if not bundled with other policies.

#8 – American Family: Best for Unique Coverage Options

Pros

• Unique Coverage Options: Offers unique coverage options like matching siding protection, which can be a significant advantage for homeowners concerned about aesthetics after a claim.
• Generous Discounts: Provides several discount options, including for loyalty and safety equipment.
• Customer Focused: Find out why American Family generally receives positive customer service reviews in our American Family insurance review & ratings.

Cons

• Limited Availability: Not available in all states, which limits the potential customer base.
• Rate Increases: Some customers report significant rate increases at renewal, especially after filing claims.

#9 – Farmers: Best for Customizable Coverage Packages

Pros

• Customizable Packages: Discover the benefits of Farmers’ tiered coverage options by reading our Farmers insurance review & ratings.
• Smart Home Discounts: Provides discounts for smart home technology, which can encourage homeowners to upgrade their home tech for both safety and savings.
• Decent Customer Support: Generally provides good customer support and has a straightforward claims process.

Cons

• Costly Premiums: Premiums can be relatively high, particularly for comprehensive coverage levels.
• Coverage Limitations: Some policyholders have noted limitations in coverage that were not initially apparent, leading to potential gaps in protection.

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#10 – Chubb: Best for High-Value Homes

Pros

• High-Value Home Specialist: Chubb is well-regarded for insuring high-value homes and offers tailored coverage that meets the specific needs of wealthier homeowners.
• Cash Settlement Option: Offers a cash settlement option if you decide not to rebuild after a total loss, providing more flexibility.
• Risk Consulting Services: Discover the proactive approach Chubb takes to protect homes in our Chubb insurance review & ratings.

Cons

• High Premiums: Chubb’s premiums are among the highest in the industry, which might be prohibitive for some homeowners.
• Selective Policy Acceptance: Chubb tends to insure only higher-value homes, which excludes the average homeowner from their services.

Important Home Insurance Considerations During Renovations

If you are plannin1g to make changes to your home or undergo renovations, considering the best home insurance is crucial to keep in mind as well. Notify the insurance company ahead of time that you plan to make changes, and how they will affect home’s value. By conforming to the requests of the insurance company, you can eliminate the possibility of having a future claim denied.

Unless you are a licensed contractor, do not perform the work yourself. Insurance companies only cover professionally done work. Adding a new room may seem simple, but if your insurance company denies coverage, it’s futile. Your insurance agent’s role in the claims process is crucial as they ensure that all professional work meets coverage standards.

Home Insurance Monthly Rates for Renovations by Coverage Level & Provider

This table displays monthly home insurance rates from various providers, categorized by the level of coverage—either minimum or full. For example, Allstate offers a minimum coverage rate of $55 and a full coverage rate of $160. On the lower end, USAA offers the most affordable minimum coverage at $40 and full coverage at $120.

Conversely, Chubb has the highest rates, with minimum coverage costing $60 and full coverage at $170. This data helps homeowners compare the cost implications of different insurance coverage levels after making renovations.

Documenting Construction Progress for Insurance and Value Assessment

Take pictures or make videos of the work area before you begin, and maintain a running series of updates as the work progresses. If you are able to document exactly what was used and how the work was done, you will be in a much better position to have a future claimed honored and the damage repaired to the post-construction condition.

Keep in mind that the work you have done will affect your insurance premiums. Home insurance is typically based on the square footage of the home, its condition, and current market value, similar to what a typical homeowners insurance policy covers. It is also important to note that improving the home far above the base value of other homes in the area will not necessarily increase your home value.

This table lists monthly home insurance rates for various companies, categorized by coverage level. Each row represents a different insurance company and details the discounts available, such as multi-policy, claims-free, and home renovation discounts.

Companies include Allstate, American Family, Chubb, Farmers, Liberty Mutual, Nationwide, Progressive, State Farm, Travelers, and USAA, each offering unique discounts to cater to homeowners seeking to lower their rates after renovations.

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Updating Home Insurance Coverage After Renovations

Once the work is complete, take a new home inventory, including any furnishings in the new room or alterations made, which might be considered under home features that can make homeowners insurance more expensive.

Submit this inventory to your insurance along with a request to increase the coverage for the new value of the home. Be prepared to negotiate; you don’t have to accept the first offer your insurance company makes. If a mutual agreement isn’t reached, remember you have the right to shop around for a different carrier.

Case Studies: Best Homeowners Insurance for a Finished Renovation or Alteration

Renovating a home can uncover unexpected challenges and risks that impact budget and timeline. Proper insurance coverage is crucial to navigate these hurdles. The case studies below show how tailored insurance solutions safeguard homeowners during critical renovations, ensuring smooth project completion despite unforeseen complications.

• Case Study #1 – Structural Shield: A homeowner added a second story to their house, but a structural failure caused part of the addition to collapse during construction. Their Builder’s Risk insurance, tailored for major home renovations, covered the reconstruction costs and liability insurance for injuries, allowing the renovation to proceed without financial setbacks.
• Case Study #2 – Waterlogged Walls: During a home renovation, contractors discovered severe water damage and mold behind bathroom walls, causing structural issues. The homeowner had preemptively updated their insurance to cover such unexpected problems. This policy covered mold remediation and structural repairs, protecting the homeowner from unforeseen financial strains.
• Case Study #3 – Heritage Home Compliance: A homeowner renovating a historic property faced strict regulations requiring specialized materials, increasing costs. Their insurance, with a Historic Property Endorsement, covered these expenses to meet preservation standards, ensuring compliance and preserving the property’s historic value without financial strain.

These case studies highlight the importance of having comprehensive and specific insurance coverage when undertaking home renovations.

By preparing for potential risks and ensuring that their insurance policies are up-to-date, homeowners can protect their investments and see their renovation projects through to successful completion without undue financial burden.

Essential Insurance Updates for Home Renovations

Homeowners must update their insurance policies when undertaking major renovations or alterations. Comprehensive insurance covers unexpected risks linked to home transformations, aligning coverage with the updated property’s needs.

Comparing quotes ensures optimal rates and coverage. Informing insurers about renovations prevents claim denials, and professional work maintains coverage. This strategy, akin to comparing car insurance quotes, simplifies managing insurance complexities and ensures protection during renovations.

Why pay more to protect your home when you can find the same coverage for less? Enter your ZIP code below to compare home insurance quotes with our free comparison tool.

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