Remodeling your home is one of the most exciting improvements you can make. It’s also a major investment. And if there’s one detail I’ve seen San Diego homeowners overlook time and again, it’s insurance.
Whether you’re adding an ADU, reworking your layout, or upgrading finishes, your remodel affects more than just style—it impacts your home’s value and your liability. With wildfire risks, coastal flooding, and San Diego’s strict permitting process in the mix,1 insurance should be part of your planning from the very beginning.
In this guide, I’ll walk you through the key coverage steps at every stage, so you can protect your investment and move forward with confidence.
🎧 Prefer to listen instead? Check out the podcast version of this guide. Perfect for tuning in while you plan your remodel. 👇
Insurance Requirements Disclaimer
Important Note: Insurance requirements and coverage options can change frequently based on market conditions, regulatory updates, and carrier policies. While this guide provides general best practices for San Diego homeowners, always verify current requirements and available coverage options directly with your insurance provider or a licensed agent before making any decisions about your remodeling project.
Before you start picking out paint colors, call your insurance provider. A remodel can significantly alter the value of your home, and your current policy may not reflect those changes. Policy limits, exclusions, and terms need to be revisited.
Make sure your policy covers:
Some homeowners are surprised to find their policies exclude damage during renovations, especially if the property is deemed “vacant” or “unoccupied.” This is especially common in major remodels where you’re living off-site.
What Homeowners Should Know: An unoccupied home under renovation may not be covered for fire, vandalism, or theft. Talk to your insurer about an endorsement or temporary coverage. Ask if your provider offers a “vacancy permit” or rider to bridge the gap.
Home improvements, such as adding new square footage or installing luxury finishes, can impact your replacement costs. An updated home appraisal helps your insurance agent set accurate policy limits to match your remodel’s new value. It’s also essential for refinancing and resale down the road.
If you’re adding new appliances, furniture, or electronics during the remodel, it’s smart to increase your personal property limits. Standard policies may not automatically cover high-value upgrades, such as a smart appliance suite or a built-in home theater system.
At Kaminskiy, we provide every client with detailed plans and permit records. These can be shared with your insurance agent to ensure proper coverage during the remodel. A design-build firm like ours helps streamline this process.
I always encourage clients to bring their remodel plans to their insurance agent early. It’s one of the easiest ways to prevent costly gaps in coverage.
Verify that your contractor has up-to-date general liability coverage. This protects you if they cause accidental damage to your home or if third-party injuries occur during the project.
Ensure your contractor carries workers’ compensation insurance for their employees. Without it, you could be financially responsible if someone gets injured while working in your home.
Ask for Certificates of Insurance (COI) and keep them on file. This includes:
Also known as Course of Construction Insurance, this coverage protects the structure and materials during the remodeling process. It protects against theft, vandalism, fire, and weather-related events.
What It Covers:
Understanding exclusions is just as important as understanding coverage:
Some builder’s risk policies offer optional endorsements for “soft costs” and delay coverage. These may include:
Speak with your agent about including these if you’re concerned about unexpected delays.
Not all policies are created equal. Here’s how to choose the right one:
Before purchasing a policy, here are the essential factors to review with your insurance provider:
At Kaminskiy Design and Remodeling, we make every step of your remodel easier, including the insurance process. Through our partnership with Buildertrend Insurance Services, our clients can access Builder’s Risk Insurance with average savings of 20% on equal or better coverage.2
Why choose Buildertrend Insurance through Kaminskiy?
🔹 Unlock better quotes in seven clicks or less
🔹 Personalized one-on-one insurance support
🔹 Access instant policy documents and binders
🔹 Manage coverage and paperwork all in one platform
Even if your contractor is insured, you should maintain robust liability coverage. If a worker gets hurt on your property and the contractor’s policy doesn’t cover it, your insurance may be on the hook.
Cutting corners on permits can invalidate insurance claims. In San Diego, city inspectors confirm whether your project meets building codes. Noncompliance can void your coverage.
Remodels are particularly vulnerable to theft, especially when left unattended overnight. Discuss coverage options with your agent for stolen appliances, materials, or tools. Installing cameras or temporary fencing may also lower premiums.
Security Tips:
Let your insurer know about your renovation plans before you begin work. Your project could influence risk factors or premiums. Provide scope, budget, and timeline.
Failing to inform your provider can jeopardize coverage if a claim arises during the project. Transparency up front saves major stress later.
Once the project wraps up, notify your insurance company. This isn’t just about boosting your coverage—it may even qualify you for discounts, especially if your remodel includes upgraded electrical, plumbing, or fire-resistant features.
Keep detailed records of expenses, materials used, and before-and-after photos. If you need to file a claim later, this documentation will serve as your best defense.
Do’s and Don’ts:
Invite your insurance agent for a walkthrough of the finished remodel. This helps ensure coverage is correctly updated and can uncover hidden vulnerabilities or new insurable features.
Most remodeling work in San Diego requires city permits. The City of San Diego’s Development Services Department outlines the projects that require approval. At Kaminskiy, we handle this process entirely, ensuring your remodel is fully compliant with all relevant regulations.
Only work with licensed contractors registered with the California Contractors State License Board. Licensing is a legal requirement and a safeguard that your contractor meets state-mandated standards.
If you added a backyard ADU or expanded your home near fire-prone areas, you may qualify for mitigation discounts, especially if you used fire-resistant materials like fiber-cement siding or Class A roofing.
According to a CalMatters analysis, nearly 3.7 million homes statewide in California are at high or extreme risk for wildfire.3 In San Diego County specifically, many neighborhoods in the backcountry, foothills, and canyon areas face elevated wildfire risk. Take this seriously if you’re near rural or canyon areas, or in communities like Scripps Ranch, Rancho Bernardo, or Ramona.
Additions near the coast? You might need flood insurance or higher premiums depending on how the remodel affects elevation and stormwater flow.
Use FEMA’s flood zone maps to check your risk level. Remodeling may change your Base Flood Elevation (BFE).
ADUs often require a separate policy or a rider. This is especially important if you plan to rent it out. Talk to your agent about landlord liability, rental loss protection, and tenant-related risks.
Your best ally during this process is a knowledgeable, local insurance agent. San Diego’s risks—wildfires, earthquakes, coastal flooding—require someone who knows how to navigate local codes and insurance carriers.
Questions to Ask Your Agent:
At Kaminskiy Design and Remodeling, we don’t just finish the job—we stand behind it. Our full-service design-build process includes a two-year warranty on all our work. If you ever need help providing documentation to your insurer after the project, we’re just a phone call away.
I’ve guided many San Diego homeowners through this process, and I know how overwhelming it can feel. That’s why we created this quick-reference checklist to help you stay organized, protected, and confident from start to finish.
Use this quick-reference checklist to ensure your home remodel is fully covered from the start, regardless of the project’s size or scope.
Need help putting this into action? Kaminskiy Design and Remodeling is here to guide you every step of the way, from organizing paperwork to coordinating walkthroughs and documenting your upgrades.
Start by assessing your renovation’s full scope and value, including materials, labor, and soft costs like permits or rental income loss. Confirm your policy covers common risks in San Diego, such as wildfire, theft, and coastal weather. Ensure your contractor’s insurance doesn’t leave gaps, and work with a local agent who understands regional construction risks.
Depending on your project, consider endorsements for debris removal, equipment breakdown, materials stored off-site, or loss of use. If your home is near a floodplain or wildfire zone, adding flood or wildfire coverage can be essential. These optional add-ons help reduce out-of-pocket costs and claim denials later.
Yes. An ADU, especially one intended for rental use, may require a separate policy or rider. Discuss landlord liability, rental income protection, and tenant-related coverage with your agent. Even if you’re not renting immediately, securing appropriate coverage now can save you hassle later.
Remodels increase your home’s replacement value. Upgrades like new square footage, premium finishes, or smart systems increase the cost to rebuild, which must be reflected in your policy limits. Request an updated appraisal after the remodel to ensure your coverage meets your home’s new value.
Aside from general construction risks, homeowners in San Diego should factor in wildfire exposure (especially in canyons or foothills), coastal flood risk, and compliance with local permitting regulations. These region-specific risks often require tailored policies or add-ons not included in standard coverage.
Not notifying their insurer before starting work. Failing to update your insurance provider can lead to denied claims or canceled coverage. Always inform them of your project scope and timeline, and request written confirmation of continued coverage.
Insurance isn’t the most exciting part of a home remodel, but it’s one of the most important. With the right coverage in place, you can move forward knowing your investment, your family, and your peace of mind are protected.
At Kaminskiy Design and Remodeling, we take that seriously. We’ll handle permits, help you document your upgrades, and back our work with a two-year warranty. You can count on us to be there every step of the way.
Ready to remodel with confidence?
If you’re ready to get started, I’d love for you to give us a call or schedule your free in-home design consultation. Let’s build something beautiful and make sure it’s protected, too.
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Additional Resources:
Kimberly Villa is a recognized expert in the Home Design and Remodeling industry. Her passion for the industry is matched only by her love for sharing insights, new trends, and design ideas. Kimberly’s expertise and enthusiasm shine through in her contributions to the Kaminskiy Design and Remodeling website blog, where she regularly shares valuable information with readers.
