Protect your property, your investment, and your peace of mind
Renovating in New York City is exciting — but it’s also a legal and financial tightrope. From water leaks to faulty wiring, plenty can go wrong. That’s why insurance and warranties should never be an afterthought.
Whether you’re a first-time homeowner in Brooklyn or managing a brownstone in Harlem, this guide will help you understand what protections you need when renovating your property in NYC.
🧾 Why Insurance Is Essential During Renovation
Renovation work introduces new risks to your home:
- Water damage
- Fire hazards
- Structural damage
- Injuries on site
- Lawsuits from neighbors or subcontractors
A simple mistake could cost thousands in repairs or legal fees if you’re not properly insured.
🏠 Step 1: Check Your Homeowner’s Insurance
Most standard homeowner policies do not cover major renovations automatically. Before starting work:
✅ Notify your insurance provider
✅ Confirm whether you need a “builder’s risk” rider
✅ Update your dwelling coverage limit if you’re increasing the home’s value
✅ Ask about temporary vacate clauses (some policies don’t cover homes left empty)
💡 If your contractor causes damage and is uninsured — your insurer could deny the claim if you didn’t disclose the renovation.
👷 Step 2: Require Contractor Insurance
NYC law requires all licensed contractors to carry certain types of insurance:
🔹 General Liability Insurance
Covers property damage or injuries during construction.
🔹 Workers’ Compensation Insurance
Covers job site injuries to employees or subcontractors.
🔹 Disability Insurance (NY State Law)
Required for employees of any contracting firm.
✅ Ask for a Certificate of Insurance (COI) listing you and your property as “Additional Insured.”
✅ Confirm their license is active with the NYC Department of Consumer and Worker Protection (DCWP) or the DOB.
🧠 Never assume coverage. Ask for proof — and call the insurer to confirm.
🛠️ What Is Builder’s Risk Insurance?
If your project is large (gut renovation, additions, multi-month timeline), consider a Builder’s Risk policy — often required by lenders.
It covers:
- Fire, theft, vandalism
- Materials stored on-site
- Weather-related damage
- Work in progress
Usually purchased by the homeowner or GC and lasts the duration of construction.
🛑 What Can Void Your Insurance?
- Doing unpermitted work
- Hiring unlicensed contractors
- Failing to report changes to your insurer
- Leaving the property unoccupied without disclosure
- Misrepresenting project cost or scope
🧾 Understanding Warranties: What to Expect in NYC
🧱 Contractor Warranty (Workmanship Warranty)
Most NYC contractors offer a 1-year workmanship warranty, covering defects in labor — not materials. This is not required by law, but good contractors include it in the contract.
🪟 Manufacturer’s Warranty
Applies to items like:
- Windows
- Flooring
- Appliances
- Roofing materials
- HVAC systems
These warranties only apply if the product was installed correctly and registered.
🧰 Extended Service Plans
Some contractors partner with third-party warranty companies for longer coverage. Read the fine print.
✅ Must-Haves in Your Contract
- Warranty terms in writing
- Insurance information clearly stated
- Scope of work + materials
- Mechanic’s lien release clause
- Start and completion dates
- Payment schedule tied to milestones
📎 In NYC, a written contract is required by law for home improvement projects over $500.
🏙️ Special Considerations for Co-ops & Condos
- Check with your building management — they may require:
- Specific contractor insurance limits
- Approval of contractor credentials
- Proof of additional insured listing
- Your personal condo/co-op insurance (HO-6) may not cover renovation damage. Ask your insurer if a unit renovation rider is needed.
📝 Final Thoughts
Insurance and warranties might not be as exciting as tile colors or open shelving, but they’re the foundation of a safe and successful renovation in NYC. Before you swing a hammer or sign a check:
✔️ Confirm your own coverage
✔️ Demand proof of contractor insurance
✔️ Get warranties in writing
✔️ Never start without a contract
For smart renovation tips, vetted professionals, and legal guidance for NYC homeowners, visit www.RenovateNY.com — your trusted local resource.
