The old dwelling limit may describe the old house
Adding square footage, upgrading finishes, enclosing a garage, or building a large detached structure can change the estimated cost to rebuild. Market value and construction cost are different figures, so do not assume a higher sale estimate automatically updates the insurance policy.
Give the agency the scope, expected cost, start and completion dates, contractor information, and plans for occupancy during the work. Ask whether the current policy needs an update before construction begins.
Construction changes the risk while work is underway
Open walls, temporary weather exposure, stored materials, vacant periods, and people working on the property can raise questions that do not exist during ordinary occupancy. Your policy language and the size of the project determine what matters.
Ask the contractor for evidence of their own insurance and verify licenses or permits with the appropriate authority. A contractor's coverage and your home policy serve different purposes.
Update records when the project is finished
Save contracts, invoices, permits, photographs, roof documentation, model numbers, and appraisals for major property. Tell the agency when the work is complete so the home's characteristics and replacement estimate can be reviewed.
A new roof, monitored alarm, or protective feature may affect underwriting or discount eligibility, but never assume a particular change guarantees a discount. Ask what documentation the company requires.
Keep this list handy
Ask these questions about your policy
- Does the agency need to know before work begins?
- Will the project change the estimated cost to rebuild?
- Does the policy address a temporary vacancy or construction exposure?
- What insurance should I request from the contractor?
- Which final documents should I send after completion?
Sources and further reading
We used the public consumer resources below to prepare this guide. Your declarations page and policy language still control your coverage.
- Combining Your Insurance, National Association of Insurance Commissioners
- Choosing Your Homeowners Insurance Policy, Oklahoma Insurance Department