Homeowners FAQs

Do I need vacant home insurance during home renovation?

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Quick answer: If the renovation involves substantial work and the home will be empty, possibly. If construction is active, builders risk insurance is usually the correct policy instead.

If your home will sit empty during a renovation, your standard homeowners policy may stop covering it after 30 to 60 days of vacancy. A vacant home policy or a builder’s risk policy is typically needed to fill that gap. The trigger is straightforward: once no one is living in the home and it crosses the vacancy threshold, standard coverage often shrinks or disappears entirely.

Why does vacancy affect your homeowners policy?

Standard homeowners policies are written for occupied homes. An empty home presents a different risk profile: no one notices a leaking pipe for weeks, a break-in goes unreported, and fire can spread unchecked. Most policies contain a vacancy clause that limits or eliminates coverage once the home sits empty past a set period, commonly 30 to 60 days, unless the carrier extends coverage through an endorsement. Renovations compound the vacancy risk by adding tools, open walls, and contractor traffic that standard policies are not designed to cover.

For example, a homeowner in Marietta moves out during a major kitchen and bathroom remodel. Six weeks into the project, a supply line left open by a contractor floods the first floor, causing $30,000 in damage. Because the home had been vacant past the policy’s threshold, the homeowners insurer denies the claim. A vacant home or builder’s risk policy in place during the project would have covered the loss.

What is the difference between a vacant home policy and a builder’s risk policy?

A vacant home policy covers a home that is empty but structurally unchanged. A builder’s risk policy is designed for properties actively under construction or renovation, covering the structure, materials stored on-site, and sometimes contractor equipment (see our guide on replacement cost vs actual cash value). For a gut renovation or structural work, builder’s risk is usually the better match because it is built for job-site conditions. For a brief cosmetic project where you are away temporarily, a vacancy endorsement on your existing policy may suffice if the carrier allows it, though not all do.

Which renovation situations typically require a separate policy?

  • You stay in the home during minor cosmetic work: your standard policy usually remains in force, but confirm whether building materials stored on-site are covered and for how much (see what homeowners insurance covers for home-based work).
  • You move out for a major renovation lasting more than 30 to 60 days: the home likely crosses the vacancy threshold and a vacant or builder’s risk policy is usually needed.
  • Structural work, additions, or a full gut renovation: a builder’s risk policy is the standard solution, as it is designed specifically for properties under active construction.

Who covers what between you and your contractor?

A licensed contractor carries their own general liability insurance, which covers their negligence and the work they perform. That policy protects third parties and covers the contractor’s liability, but it does not replace your coverage on the building itself during the project. Your policy and the contractor’s policy serve different functions, and a gap between them can leave the structure exposed if the contractor’s insurer disputes coverage for a loss that occurs while work is underway.

For example, a roofing crew in Johns Creek leaves a tarp improperly secured overnight. A rainstorm pushes water into an open section of the roof, soaking the attic and upper floors. The roofing contractor’s liability policy may cover the negligence if fault is clear, but if the contractor disputes responsibility or their limit is insufficient, your own policy needs to respond. Without the right renovation policy in place, that response may not be available.

How do you get the right coverage before a renovation starts?

The right time to arrange coverage is before handing the keys to a contractor and moving out (see what a free coverage review involves). A free coverage review can identify which policy type fits your project, confirm whether your existing homeowners policy contains a vacancy clause, and coordinate coverage for the full renovation period so the home, the materials, and the work in progress are all protected while the project runs.