lance • October 6, 2025
TN Homeowners: What to Know About Insuring A Remodel
Is Your Insurance Up For It?
Things To Think About
Home renovations can increase you home’s value, but they also increase your risk. Without the right coverage, you could face serious financial losses if something goes wrong during construction. Here’s everything Tennessee homeowners need to know about protecting their home investment with the right remodeling insurance.
Why Remodeling Insurance Matters for Tennessee Homeowners
Most standard homeowners policies in Tennessee don’t automatically cover damage or liability during a remodel. Whether you live in Nashville, Knoxville, Chattanooga, or Franklin, any major construction project changes your home’s value and risk profile — and your insurance should reflect that.
Common risks during remodeling include:
- Contractor accidents and injuries
- Theft of building materials or tools
- Fire or water damage during construction
- Storm damage to unfinished areas
- Property damage caused by subcontractors
Without proper coverage, these losses could come out of your pocket.
1. Check Your Current Homeowners Policy Before Starting Any Work
Before the first hammer swings, review your homeowners insurance policy. Many policies only cover your home in its current state — not while it’s under renovation.
Ask your insurance agent:
- Will my homeowners policy cover damage caused by construction?
- Are my coverage limits high enough for my home’s new value?
- Should I increase coverage for materials and new structures?
If you’re planning anything bigger than a cosmetic upgrade, your insurer might recommend an endorsement
or temporary policy adjustment.
2. Consider a “Dwelling Under Renovation” Endorsement
For larger projects, such as room additions or full kitchen remodels, Tennessee homeowners can add a dwelling under renovation endorsement (sometimes called a “renovation rider”).
This endorsement protects your home from risks that appear during remodeling, like:
- Theft or vandalism of building materials
- Fire, wind, or water damage during construction
- Accidental damage to new structures before completion
This is especially helpful if your home will be vacant or partially unoccupied during the remodel — since vacant homes face different insurance risks.
3. Verify Your Contractor’s Insurance Coverage
In Tennessee, licensed contractors are required to carry insurance — but not all do. Always ask for proof of insurance before signing a contract.
Your contractor should have:
- General liability insurance: Covers damage to your property.
- Workers’ compensation: Covers employee injuries on the job.
- Builder’s risk or property damage coverage: Protects materials and partially completed work.
Request a certificate of insurance and verify that it’s current. If a contractor is uninsured and an accident happens, you could be legally and financially responsible — even if it wasn’t your fault.
4. Review Your Liability Coverage During Construction
Remodeling means more traffic on your property — contractors, delivery drivers, electricians, and more. If anyone gets injured on your property, you could face a lawsuit.
Tennessee homeowners should check their liability coverage limits and consider increasing them during remodeling.
For higher-value properties or major renovations, an umbrella insurance policy can add an extra layer of protection beyond your homeowners coverage — and it’s usually very affordable.
5. Protect Building Materials and Tools from Theft or Damage
Construction materials and equipment are frequent targets for theft. If your materials are stored in your garage, yard, or driveway, they may not be automatically covered by your standard policy.
You can protect these assets by:
- Adding a personal property endorsement
- Ensuring your contractor’s builder’s risk policy covers materials
- Keeping receipts and documenting materials with photos
If you’re managing the project yourself, make sure your own policy extends to those materials before they’re installed.
6. Large Renovation Projects May Require Builder’s Risk Insurance
A builder’s risk insurance policy is specifically designed to protect a home during construction or major renovation.
It covers losses from:
- Fire or storm damage
- Vandalism or theft
- Collapsed structures during building
If your remodel involves major structural changes — such as adding a second story, finishing a basement, or building an addition — builder’s risk insurance is often the best option.
Ask your Tennessee insurance agent if you can purchase it through your homeowners insurer for the duration of your project.
7. Update Your Homeowners Policy After the Remodel
Once your remodel is finished, it’s essential to update your homeowners insurance to reflect your home’s new value and features.
Why this matters:
- Your home’s replacement cost has likely increased.
- You may have added custom materials (granite countertops, hardwood floors, etc.) that cost more to replace.
- New systems (HVAC, roofing, plumbing) can affect your policy discounts.
If you don’t update your policy, you could end up underinsured — meaning your payout might not cover repairs or rebuilding costs after a loss.
Take photos, save receipts, and share documentation with your insurance agent so they can properly adjust your coverage.
8. Tennessee-Specific Insurance Considerations
Every state has its quirks when it comes to home insurance, and Tennessee is no exception. Here are a few local factors to consider:
Weather and Natural Disasters
Tennessee homeowners face a range of weather risks — from tornadoes and hail in the west to flooding in middle Tennessee and heavy storms in the east.
If your remodel affects your roof, basement, or foundation, make sure your policy includes coverage for these hazards.
Flooding
Flooding is not covered by standard homeowners insurance. If you’re adding a basement, pool, or new lower-level room, talk to your agent about flood insurance through the NFIP or a private insurer.
Historic and Rural Properties
If you live in a historic home or a rural area of Tennessee, replacement costs and construction timelines may differ. Always make sure your coverage limits match the true rebuild value of your property.
9. Communicate Early and Often With Your Insurance Agent
Your insurance agent should be your first call before any remodeling begins.
They can help you:
- Identify gaps in your current coverage
- Recommend endorsements or builder’s risk policies
- Update your policy after the remodel
- Verify your contractor’s credentials
Keeping your agent in the loop helps ensure your coverage stays accurate and your investment protected.
Final Thoughts: Remodeling Right in Tennessee
Renovating your home is an exciting step — but it also comes with risks that many Tennessee homeowners overlook. The best way to protect your project (and your wallet) is by updating your insurance before, during, and after construction.
Whether you’re upgrading your kitchen in Murfreesboro, adding a deck in Clarksville, or finishing a basement in Knoxville, the right coverage keeps your dream home protected from unexpected losses.
Quick Takeaways
- Review your homeowners policy before remodeling
- Confirm your contractor’s insurance and licenses
- Consider endorsements or builder’s risk insurance for large projects
- Update your policy when the remodel is complete
- Add flood or umbrella coverage if needed
With the right remodeling insurance, Tennessee homeowners can renovate with confidence — knowing their home, investment, and peace of mind are protected from start to finish.
