Your homeowners policy may not fully cover your house while you are renovating, so check with your insurer before work starts. California's standard fire policy lets an insurer deny a loss that happens "while the hazard is increased" by something you control or know about, or while the building is "vacant or unoccupied beyond a period of 60 consecutive days," unless the policy says otherwise in writing.[1] For a larger renovation, a renovation builders risk policy pays for the work and materials, and it can also cover your existing home. Alchemy writes renovations starting at $10,000 of work, with terms of 1 to 12 months.[2]
This guide is for a California homeowner who plans a remodel, an addition or a complete gut renovation. It outlines what to tell your insurer, when a homeowners policy is enough, when to add builders risk, what your contractor must carry and what happens if you hire workers directly. When you're ready, request renovation insurance quotes and we'll send the project out to several construction markets.
Does homeowners insurance cover a house during a renovation?
Often partly, and sometimes not at all. A homeowners policy is written for an occupied home. A renovation often brings open walls, materials on site, power tools, subcontractors and sometimes no one living there, and the policy's conditions deal with both.
California's standard form of fire policy says that, unless otherwise provided in writing, the insurer is not liable for a loss that occurs "(a) while the hazard is increased by any means within the control or knowledge of the insured; or (b) while a described building ... is vacant or unoccupied beyond a period of 60 consecutive days."[1] Your homeowners policy may use slightly different language, but it generally carries the same idea: a large change in the risk should be disclosed to the insurer, and a long vacancy restricts coverage.
A kitchen refresh while you live in the house usually stays within an ordinary homeowners policy, but call your insurer anyway. A gut renovation, an addition, or a remodel you'll move out for is where coverage gaps appear.
What should I tell my insurer before the work starts?
Give the facts that change the risk:
- The scope: rooms, structural work, roof, electrical and plumbing.
- Whether you will live in the house during the work, and for how long it may be empty.
- The budget and dates.
- Who does the work: a licensed general contractor, trades you hire yourself, or you.
Ask your insurer three questions and get the answers in writing: does my policy stay in force while the work is done, does the vacancy or unoccupancy clause apply, and does the policy cover materials and the new work before they're installed? If any answer is no, you need a separate policy for the project.
When do I need renovation builders risk insurance?
When a home improvement project is large enough that your homeowners insurance will not cover it, or when your lender or contractor asks for it. Builders risk covers the work in progress, materials at the job site and in transit, and, if you add it, the existing house while the renovation is underway.
The California-open renovation programs we use publish these terms:
| Alchemy national program | Blitz builders risk | |
|---|---|---|
| Paper | Admitted and surplus lines[5] | Non-admitted[6] |
| Renovation cost covered | $10,000 to $1,000,000 per job site[2] | Up to $5 million total insured value per location[6] |
| Existing structure | $150,000 to $1,000,000[2] | Existing building coverage available[6] |
| Project types | Remodeling and renovation of existing homes[5] | Addition or minor remodel, significant non-structural renovation, structural renovation[6] |
| Term | Renovation in 1-month steps up to 12 months[2] | 3, 6, 8, 10 or 12 months[6] |
| Who can buy | The owner or the builder | Owner, general contractor, developer or tenant[6] |
| Points to check | Defective electrical panels or polybutylene pipes are ineligible unless replaced[2] | Occupying the building before completion needs underwriter referral[6] |
Our builders risk cost guide covers minimum premiums and term pricing. If you plan to act as your own builder or to add an ADU, read our guide to builders risk for homeowners and owner-builders.
What insurance should my contractor have?
A licensed contractor brings the liability insurance and the workers' comp for its own crew. California requires every home improvement contract to include two notices: one headed "Commercial General Liability Insurance (CGL)" that states whether the contractor carries it and through which insurer, and one that states whether it carries workers' comp for all employees or has no employees and is exempt.[3]
Check both before you sign. Ask for a certificate of insurance naming you as an additional insured, and look the contractor up on the CSLB website to confirm its workers' comp record. A licensed contractor is required to keep either a workers' comp certificate or an exemption on file with the board.[7]
The contractor's general liability pays for damage its work causes to your house and for injuries to other people. It does not pay to redo its own faulty work, and it is not a builders risk policy for your materials and structure.
What if I hire workers directly instead of a contractor?
Then you may be their employer. Labor Code section 2750.5 presumes that a worker doing work that requires a contractor's license is an employee rather than an independent contractor, unless shown otherwise.[8]
In California, any policy that provides comprehensive personal liability, including the liability portion of your homeowners policy, must provide workers' compensation coverage for household employees defined in Labor Code section 3351(d).[4] That coverage applies only if no other workers' comp policy covers the injury.[4] A household worker isn't covered if, in the 90 days before the injury, the work was for less than 52 hours or for wages of $100 or less.[9]
This backstop does little to protect a real renovation crew, and an unlicensed worker is limited to jobs under $1,000 with no permit.[10] For anything larger, hire a licensed contractor that has its own workers' comp.
Frequently asked questions
Do I need to tell my insurance company about renovations?
Yes. The standard fire policy excludes losses while the hazard is increased by something within your control or knowledge, unless the policy provides otherwise in writing.[1] Telling the insurer lets it confirm or adjust coverage.
Is my house covered if I move out during the remodel?
Check the vacancy and unoccupancy clause. The standard fire policy restricts coverage when a building is vacant or unoccupied beyond 60 consecutive days, unless your policy provides otherwise in writing.[1]
Who pays for builders risk on a home remodel?
Either the owner or the contractor, as the contract says. Blitz sells the policy to owners, general contractors, developers or tenants.[6]
This guide is general information based on California law and carrier program sheets dated 2025. Your homeowners policy's own wording controls, so read its vacancy and increased-hazard conditions. Menlo Insurance Services (CA license 6020106) is a licensed broker that may earn a commission on a placement. Non-admitted insurers are not backed by the California Insurance Guarantee Association.
References
- 1.California Legislative Information. “Insurance Code section 2071 (standard form of fire insurance policy).” Accessed 2026-09-27. https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=2071.&lawCode=INS ↩
- 2.Alchemy Insurance Solutions. “Builders Risk National Program (Admitted & E&S) Quick Reference Sheet: Coverage Options & Limits.” 2025. https://6041899.fs1.hubspotusercontent-na1.net/hubfs/6041899/Carrier%20Store%20Resources/Alchemy/BR%20N%20Program%20QRC%20updated%2010925.pdf ↩
- 3.California Legislative Information. “Business and Professions Code section 7159.” Accessed 2026-09-27. https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=7159.&lawCode=BPC ↩
- 4.California Legislative Information. “Insurance Code section 11590.” Accessed 2026-09-27. https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=11590.&lawCode=INS ↩
- 5.Alchemy Insurance Solutions. “National Builders Risk (program one-pager).” 2025. https://6041899.fs1.hubspotusercontent-na1.net/hubfs/6041899/Carrier%20Store%20Resources/Alchemy/One-Pager%20BR.pdf ↩
- 6.Blitz Insurance. “Builder's Risk Appetite.” 2025. https://cdn.prod.website-files.com/6849cf37787dd9efa946a7bf/690a2b1abb749501f45b63f3_Builder%E2%80%99s%20Risk%20PDF%20V2.pdf ↩
- 7.California Legislative Information. “Business and Professions Code section 7125.” Accessed 2026-09-27. https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=7125.&lawCode=BPC ↩
- 8.California Legislative Information. “Labor Code section 2750.5.” Accessed 2026-09-27. https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=2750.5.&lawCode=LAB ↩
- 9.California Legislative Information. “Labor Code section 3352.” Accessed 2026-09-27. https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=3352.&lawCode=LAB ↩
- 10.California Legislative Information. “Business and Professions Code section 7048.” Accessed 2026-09-27. https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=7048.&lawCode=BPC ↩