You’re getting ready to embark on a bathroom remodel. Before you begin the age-old search, bathroom remodeling companies near me, you have questions about your financial options. If you could expand your bathroom remodel budget with a home insurance claim, it would give you a lot more wiggle room. Is this an option?
At ZINTEX Remodeling Group, we’ve helped tens of thousands of homeowners determine the best remodeling options for their budget and the best financing options to help. Very rarely does home insurance come into play, but it isn’t impossible. Read on to find out how and when home insurance might help to cover bathroom remodel costs.
Table of Contents
- What Does Home Insurance Cover?
- When Home Insurance May Cover a Bathroom Remodel
- What Home Insurance Doesn't Cover During a Bathroom Remodel
- How to Protect Your Finances During a Bathroom Remodel
What Does Home Insurance Cover?
New homeowners (and those lucky enough to never have had to repair home damage before) may find their homeowner’s insurance policy a little confusing to parse out. Standard homeowners insurance typically provides coverage for:
- Damage to your home from covered unforeseen events such as fire, vandalism, or theft.
- Liability protection if someone is injured on your property.
- Personal property within your home in case of damage or theft.
Like car insurance, home insurance is meant to protect homeowners from large emergency costs. Home insurance isn’t designed to cover improvements or planned upgrades to your home. For the vast majority of homeowners who are embarking on a full or partial bathroom remodel, home insurance isn’t going to help with the cost.
When Home Insurance Might Apply During a Bathroom Remodel
While home insurance typically won’t cover the cost of a bathroom remodel, there are a few situations where your insurance could come into play, particularly during the renovation process. Here are some instances where you might be covered.
1. Covered Damage Repairs
If your bathroom remodel results from an unforeseen emergency or disaster, you may be able to file a claim and finance the project through your home insurance company. It depends on whether 1) the damage is covered by your home insurance policy and 2) you couldn’t have reasonably prevented the damage from occurring. Examples include:
- Repairing water damage from a burst pipe
- Completing structural repairs after a fire
- Repairing damage caused during a break-in
2. Liability Protection for Contractors and Workers
If a contractor or worker is injured while working on your bathroom remodel, your liability coverage might provide some protection. Homeowners insurance can sometimes cover medical costs if someone is injured on your property, even if that injury happens as a result of a construction accident. However, it’s always a good idea to make sure your contractor has their own insurance coverage to avoid potential complications or rate increases.
3. Temporary Relocation Costs
If covered repairs leave your home uninhabitable for a period of time, some home insurance policies offer "loss of use" coverage. This typically covers temporary living expenses and accommodations. For instance, if you have to stay in a hotel while your bathroom is being renovated, your insurance may cover the costs, but only if the remodeling work makes the home temporarily unlivable.
What Home Insurance Doesn’t Cover
Understanding what home insurance does cover is often made easier by discussing what it doesn’t. Here are some key examples of instances when your homeowner’s insurance isn’t likely to chip in.
1. Planned Improvements
What is the opposite of an unforeseen emergency? A planned remodel. If you’re upgrading fixtures, expanding the space, or changing the layout of your bathroom, those costs are considered improvements, which are not covered by your homeowner’s insurance policy. Even if you’re making changes that will improve functionality and safety (such as installing a walk-in tub for a senior who is aging in place), this isn’t a covered cost under a home insurance policy.
2. Repairs Resulting from Neglect
Maybe you weren’t exactly planning on remodeling your bathroom, but a build-up of damage has left you with no other choice. Unfortunately, home insurance isn’t going to help you pay for bathroom repairs or remodels resulting from neglect. In fact, even in instances of unforeseen damage, you still need to work to prevent further damage in order for home insurance to give you the maximum coverage available.
3. Poor Workmanship
Insurance policies won’t cover issues that arise from poor workmanship during a previous bathroom remodel or installation. For example, if your remodel exposes underlying structural damage that was there before the project began, it’s your responsibility, not the insurance company’s. Similarly, if there’s an issue with the work done by your contractor (e.g., faulty plumbing), this would not be covered by your policy.
4. Cost of Permits and Inspections
Depending on where you live, your bathroom remodel may require permits to ensure that the work complies with local building codes, particularly if you’re making significant structural changes. Home insurance doesn’t cover the cost of permits or any required inspections for your remodel. These expenses are something you’ll need to cover out-of-pocket.
How to Protect Your Finances During a Bathroom Remodel
While home insurance may not cover the full scope of your bathroom remodel, there are some ways to protect yourself during the process:
- Consult with Your Insurance Provider: If you believe that you’re repairing covered damage, it’s wise to talk to your insurance company first. They’ll likely want to send out a claims adjuster to assess the condition of your bathroom and the estimated cost of repairs. Beginning repairs before filing a claim could result in a smaller payout.
- Consider Renovation Insurance: Some insurance companies offer specialized coverage for home renovations, which can provide extra protection in the event of damage or liability during a remodel, even a planned one. You can ask your insurance agent if this type of policy is available to you.
- Ensure Your Contractor is Insured: Always hire a licensed contractor with adequate insurance. This can help protect you from potential liabilities, such as worker injuries or property damage that might occur during the renovation, without impacting your own insurance costs.
- Document the Remodel: Keep thorough records of your remodel, including photos and receipts for materials and labor. This documentation can help in case you need to file a claim for any damage that occurs during the renovation process.
Make the Most of Available Bathroom Financing
If you’re planning to invest in some bathroom improvements or finally addressing some long-neglected issues, your home insurance probably won’t help with covering costs. However, if you’re remodeling because covered damage rendered your bathroom unusable, your first step should be to talk to your home insurance company.
At ZINTEX Remodeling Group, we strive to help homeowners make the most of their available budget. Is financing the right choice for you? Take a look at our guide to improving your credit before financing a bathroom remodel.
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