Reviewed and approved by Samuel Corso, licensed Texas insurance agent.

Published October 3, 2026

Does home insurance cover renovations in Texas?

Planning a remodel raises two insurance questions at once: whether your current policy covers the project, and what the finished project does to the policy. This guide covers both, plus what the Texas Department of Insurance (TDI) says about a house left vacant during the work, the contractor's insurance, and what to update when the work is done.

The short answer: the TDI pages cited here don't say whether a standard home policy covers renovation damage, and they don't describe a separate renovation policy for homeowners. Whether a loss during the work is covered depends on what caused it and on your policy's own wording. What TDI's pages do address is how a remodel interacts with the policy you already have: the rebuild cost your limits are based on can change, a house left vacant during the work raises a nonrenewal risk TDI names, and the people working on your property raise questions your agent should hear before work starts.

Does a standard policy cover damage during a renovation?

TDI's Home insurance guide says home policies combine several types of coverage into one policy, with most Texas policies including dwelling, personal property, other structures, additional living expenses, personal liability and medical payments coverages. TDI notes there that coverages vary by company and suggests reading your policy or talking to your agent to be sure of your exact coverages.

None of those coverage descriptions mentions construction work on the house. Before the project starts, tell your agent what the work involves and ask how your policy applies while it is under way; that settles the question for your own policy rather than in general. Our guide on how home insurance works in Texas explains what each of the six coverages does.

A renovation can change the number your policy is built on

Your dwelling limit is based on what it would cost to rebuild your home. TDI's page How building costs affect your home insurance says: "Insurance companies calculate what it cost to rebuild your home at today's prices to figure out how much insurance you need." The same page says the insured value is the cost to rebuild or replace your home, that some companies require you to insure at least 80% of the cost to rebuild, and that most insurers will base claim payments on the amount of coverage you have.

TDI makes the cost point even for homes that aren't being worked on. Its post Home improvement ideas – indoor edition says: "Even if you aren't building or remodeling, higher construction costs may mean you need to increase your homeowners insurance policy limits." That check applies to a remodel as well, as this page's reading rather than TDI's: a project that adds space or upgrades finishes can raise the rebuild cost, and an outdated limit can leave a gap.

TDI's page Do you have enough insurance coverage to pay for home or car repairs? names who can put a number on it: "Your agent can tell you what your dollar limit is and help you estimate the cost of rebuilding your house." The same page suggests checking in with your agent every year because construction costs change. Our guide on replacement cost coverage in Texas explains how the rebuild number flows through a claim.

Moving out during the work? TDI's 60-day vacancy warning

A major renovation that empties the house can put the policy itself in question. TDI's Home insurance guide lists vacancy among the reasons a company may decide not to renew a policy: "Your house is vacant for 60 days or more. Most companies stop your coverage if your house is vacant for that long." The same guide adds that companies usually don't stop your liability coverage in that situation, and its list of common exclusions refers to losses while a house is vacant for the number of days specified by your policy, so the number on your own policy may differ from 60.

TDI states this as what most companies do, and companies may treat a renovation differently from an abandoned house. If the project will keep you out of the home for weeks, telling your insurance company before you move out lets you hear how your policy treats the vacancy. Our guide on home insurance non-renewal in Texas covers what TDI says about notice when a company doesn't renew.

Who is covered if someone is hurt during the project?

A home policy includes two coverages that respond to injuries, and TDI's Home insurance guide describes both: personal liability coverage pays medical bills, lost wages and other costs for people you're legally responsible for injuring, and medical payments coverage pays the medical bills of people hurt on your property. Whether either applies to someone working on your home depends on the circumstances and your policy's wording, which is a question for your agent.

The contractor's own insurance is the part you can check directly. TDI's page Do you know the signs of a contracting scam? says: "Ask for the contractor's certificate of insurance and bond certification. Call the companies listed to verify the coverage." TDI gives that advice in the context of storm repairs; the same check applies before any contractor starts, and a planned remodel leaves more time to make the calls.

Adding a shed, fence or detached garage

Some projects add structures rather than changing the house. TDI's Home insurance guide says other structures coverage pays to repair structures on your property that aren't attached to your house, including detached garages, storage sheds and fences. Mention a new detached structure to your agent along with the rest of the project, so the limit on that coverage reflects what now stands on the property. Our guide to other structures coverage in Texas covers how that limit works.

After the work: what to update

• The facts on your policy. TDI's renewal checklist, Is your home policy up for renewal?, says to make sure the age of your house, square footage, construction type and roof age are correct on the policy. TDI's list is written for renewals, but a renovation can change several of those facts at once, so make the same check when the work ends.
• Endorsements TDI lists. Among common endorsements TDI's Home insurance guide says most companies offer are coverage for extra construction or repair costs to meet local building codes, and for extra construction costs if your policy doesn't pay enough to rebuild your home. After a remodel, ask about those alongside the new dwelling limit.

Do you need separate renovation insurance?

For a homeowner remodeling an occupied Texas home, the TDI pages cited here point back to the policy you already have and to your agent rather than to a separate policy. Major structural work and a project that leaves the house vacant for a long stretch are the two to raise with your agent or company before work starts.

Key facts

• TDI's How building costs affect your home insurance says companies calculate the cost to rebuild your home at today's prices to figure how much insurance you need, that some companies require insuring at least 80% of the rebuild cost, and that most insurers pay claims based on the amount of coverage you have.
• TDI's Home improvement ideas – indoor edition says that even if you aren't building or remodeling, higher construction costs may mean you need to increase your homeowners insurance policy limits.
• TDI's Do you have enough insurance coverage? page says your agent can tell you your dollar limit and help estimate rebuild cost, and suggests checking in every year because construction costs change.
• TDI's Home insurance guide lists a house vacant for 60 days or more among reasons a company may not renew a policy, says most companies stop coverage after a vacancy that long, and adds that companies usually don't stop liability coverage.
• The same TDI guide describes the personal liability, medical payments and other structures coverages, and lists endorsements most companies offer for building-code and extra construction costs.
• TDI's contracting scam page says to ask for the contractor's certificate of insurance and bond certification, and to call the companies listed to verify the coverage.
• TDI's renewal checklist says to check that the age, square footage, construction type and roof age on your policy are correct.

Sources: Texas Department of Insurance, Home insurance guide (CB025), How building costs affect your home insurance, Do you have enough insurance coverage to pay for home or car repairs?, Is your home policy up for renewal? Here's what to look for, Do you know the signs of a contracting scam?, Home improvement ideas – indoor edition. TDI's Help Line is 800-252-3439, Monday to Friday, 8 a.m. to 5 p.m. How a policy treats renovation work varies by company and by policy; your own policy wording governs. This page is general information, not legal advice. For a question about your own project, read your policy, ask your agent, or contact the Texas Department of Insurance.

Take the next step

Before the project starts, make two calls: your agent, about how your policy applies during the work and what the finished project does to your rebuild cost, and the insurance companies on your contractor's certificate, to verify the coverage is real.

Get a second opinion on your policy — free. Credify is a licensed insurance agency in Texas that helps you compare home insurance from roughly 20 licensed Texas carriers — each insurer has sole responsibility for its own products — so you can weigh options for the home you're remodeling. It takes a few minutes, and there's no obligation. 📞 Talk to Credify 24/7.