Home Remodeling Contractor Insurance: Cost & Quotes From $45/mo

Table of contents

According to a survey conducted and published by a reputable source, about 8 buildings collapse in a year worldwide, and with each collapse approximately 38 people sustained fatal injuries. 

Given the unprecedented nature of home remodeling projects, you must purchase the necessary home remodeling contractor insurance coverages before undertaking any rebuilding project. You never know, a plumbing contractor you hired might commit mistakes. The clients might sue you for incomplete work. Of course, you might be hired by a general contractor and face a breach of contract lawsuit.

Insurance can greatly help when you’re starting a home remodeling business or running an established one. Read on to learn about the must-have insurance for a remodeling business, their costs, and which remodeling insurance company you should work with. 

General Liability Insurance for Home Remodeling Contractors

CoverWallet  NEXT (Best) Thimble  Hiscox The Hartford
Per occurrence limit  $1,000,000 $1,000,000 $1,000,000/$2,000,000 $300,000/$1,000,000 $1,000,000/$2,000,000
Aggregate limit  $2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $300,000/$2,000,000 $1,000,000/$2,000,000
Products and completed operations aggregate limit  $2,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Advertising injury coverage aggregate limit  $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Tenant’s legal liability coverage limit  $100,000 $100,000 $5,000 $100,000 $1,000,000
Waiver of subrogation included? Yes No Included Can be included No
Hired/non-owned auto liability coverage included? Yes No Excluded Can be included Can be included
Equipment breakdown floater included? No  Yes Yes Can be included Can be included


This is an essential business insurance policy that protects you from third-party claims leveled against you due to your employees’ actions and your business operations. The costs covered by this insurance policy includes; third-party bodily injuries and property damage, advertisement injuries, reputational harm, and copyright infringement claims. Important to note is that this business insurance doesn’t cover any auto accidents, professional mistakes, theft, and damage to your business property or any work-related sickness and injuries to your employees. An insurer will not pay you if they find out the costs you are subjected to are a result of intentional or illegal acts done by you or your home remodeling employees.


Coverage Limits for General Liability Insurance for Home Remodeling Contractors

There are two types of coverage limits under the general liability insurance for home remodeling contractors. The first limit is the per occurrence limit which amounts to $1M for one single claim. The second one is the aggregate limit which typically amounts to $2M for all the claims you ask for from your insurance within your general liability insurance for home remodeling contractors policy period. This policy period is usually 1 year.


Situations When You Can Use This Remodeling Contractor Insurance

  • When you are sued for third-party bodily injuries and property damages

  • When you are accused of reputational harm such as slander or libel

  • When your business is served with a lawsuit alleging it of copyright infringement

Add-Ons for General Liability Insurance for Home Remodeling Contractors

  • Completed operations coverage-in the event the work you did in the past or after the completion of a home remodeling project causes bodily injury or property damage, this add-on will protect you from any financial liabilities that you may be subjected to

  •  Umbrella insurance-this add-on provides you with extra protection in the event your primary insurance gets exhausted or go beyond your available coverage limit

Professional Liability Insurance for Home Remodeling Contractors

CoverWallet (Best) NEXT  Thimble  Hiscox The Hartford
Per occurrence limit  $1,000,000 $1,000,000 $1,000,000/$2,000,000 $1,000,000 $1,000,000
Aggregate limit  $2,000,000 $2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $2,000,000
Name additional insureds? Yes Yes Yes Yes Yes
Waiver of subrogation included? Yes No Yes Yes No
Deductible  $500 $500 $500 $500 $500


This business insurance policy is also referred to as errors and omissions insurance. Under this policy, you are covered from both alleged and actual claims arising due to your acts of negligence. Some of the acts of negligence you are covered against by the PLI for home remodeling contractors are failure to meet set deadlines, violation of terms and conditions of the contract, oversight in your service provision, and inability to meet the set standards of rebuilding/remodeling a home/house.

Your employees’ bodily injuries and other third-party bodily injuries, commercial auto accidents, and employee discrimination lawsuits are not covered by professional liability insurance for home remodeling contractors. Important to note is that criminal prosecutions or any other legal liability under civil law are not covered under this home remodeling insurance policy.


Coverage Limits for Professional Liability Insurance for Home Remodeling Contractors

You should expect a minimum of $100,000 and a maximum of $1,000,000 as the coverage limit for professional liability insurance for home remodeling. How much your coverage limits will be is directly dependent on the type of operations your home remodeling company carries out and the level of risks it’s exposed to.



Incidents When You Can Use This Remodeling Contractor Insurance

  • When you are served with a lawsuit due to a breach of contract

  •  When your client sues you for failure to deliver your services and also failure to meet the set deadlines for your home rebuilding project

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Commercial Property Insurance for Home Remodeling Contractors

CoverWallet NEXT (Best) Thimble The Hartford Hiscox
Building coverage limit (minimum) $50,000 $340,000 $25,000/$500,000 $35,000 $25,000
Contents coverage limit (minimum) $50,000 $35,000 $25,000/$500,000 $35,000 $15,000
Outdoor signs Excluded $2,500 Excluded Excluded Included
Accounts receivable  Excluded Excluded $5,000/$10,000 Excluded Included
Money and securities Excluded $2,500 $1,000 Excluded Included
Lock and keys  Excluded $2,500 Excluded Excluded Included
Business interruption floater Excluded Included Included Excluded Included
Equipment breakdown floater Excluded Included Excluded Excluded Included
Inland marine insurance floater Excluded Excluded $10,000 Excluded Excluded
Employee dishonesty floater Excluded $5,000 $2,500 Excluded Excluded


This essential remodeling contractor insurance protects you from financial burden in the event that your commercial building (whether rented or owned) and the contents in it get destroyed by the insured perils. Such perils include fire, vandalism, theft, and adverse weather conditions such as floods and windstorms. By purchasing commercial property insurance for home remodeling contractors, you are assured of the continuity of your business even when it’s faced with catastrophic disasters. The location of your business, its size, its estimated market value, the type of projects you undertake, and the safety measures you have put into place are some of the factors that a remodeling insurance company will use to calculate your monthly and yearly premiums.


Coverage Limits for Commercial Property Insurance for Home Remodeling Contractors

The coverage limit for commercial property insurance for home remodeling contractors is approximately $1,000,000 for every single claim. This coverage limit is determined by the risks your home remodeling company is exposed to, the number of home rebuilding projects you undertake and the size of your company (whether it’s a small-, medium or large-scale home remodeling company).


When Can You Use This Home Remodeling Insurance Coverage?

  • When your home remodeling company’s assets such as owned or rented commercial buildings and office equipment and furniture gets destroyed by fire, floods and acts of crime such as vandalism and theft

Add-Ons for Commercial Property Insurance for Home Remodeling Contractors

  • Builder’s risk insurance-this add-on covers you from incurring any costs that may arise due to the destruction of the materials you use in your rebuilding activities or damage to the actual building under construction.

  • Business interruption insurance-this add-on ensures that you are compensated for your loss of income in the event that you are unable to perform your income-generating activities due to the occurrence of an insured peril.

Business Owner’s Policy for Home Remodeling Contractors

CoverWallet NEXT (Best) Thimble  The Hartford Hiscox
General liability aggregate limit  $2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $300,000/$2,000,000
Commercial property coverage limit  $50,000 $320,000 $25,000/$500,000 $35,000 $75,000
Optional policies can be added? Yes Yes Yes Yes Yes
Name additional insureds for free? Yes Yes Yes Yes Yes
BOP discount? Yes Yes Yes Yes Yes


This remodeling contractor insurance bundles the business interruption insurance, the commercial property insurance, and the general liability insurance into one comprehensive business insurance. This cost-effective coverage protects your home remodeling business from claims and losses arising from third-party (individuals who are not directly involved in your business operations such as visitors) bodily injuries and property damages, damages to your commercial property such as buildings and the contents(things such as office equipment laptops and computers, furniture, inventories, and signages), advertisement injuries and business interruption that may lead to indefinite or temporary business closure.

Coverage Limits for BOP for Home Remodeling Contractors

The coverage limits under this essential home remodeling contractor insurance is dependent on the specificity of the policy, the insurance provider, and the risks associated with your business. However, an insurer will pay you approximately $500,000 to $2,000,000 for general liability and $10,000 to $500,000 for commercial property insurance.


Incidents When You Can Use the BOP for Home Remodeling Contractors

  • In the event a third party gets injured while in your premises for instance your delivery guy falls and fractures his/her leg in your commercial premises due to your slippery floor

  • In the event, you are sued for advertisement injuries such as brand infringement

  • In the event, your home remodeling business is forced to close down due to the occurrence of an insured peril

Tools and Equipment Insurance for Home Remodeling Contractors

NEXT  Thimble Hiscox
Aggregate limit $3,000/$10,000 $2,500/$5,000 $15,000/$25,000
Covers hired and borrowed equipment? $3,000/$10,000 $2,500/$5,000 No
Miscellaneous equipment also covered? $5,000/$10,000 No Yes
Offered as an endorsement to general liability insurance? Yes Yes Yes
Deductible $500 $500 $0


It’s sometimes referred to as equipment floater insurance. Under this insurance policy, your tools and equipment are covered against risks such as theft, fire, vandalistic acts, and adverse weather conditions such as windstorms at the job site. Most often insurers will provide coverage to tools and equipment that are moveable and those that are less than 5 years of age.

Some policies may also provide you with coverage for leased or rented tools and equipment. Important to note is that an insurer will not pay you if you intentionally damage your insured items. This policy also doesn’t provide coverage for tools and equipment that malfunction or break down due to general wear and tear.


Coverage Limits for Tools and Equipment Insurance for Home Remodeling Contractors

The coverage limits available under this indispensable remodeling contractor insurance policy range between $5,000 to $50,000 per item. The actual cash value of your tools and equipment, the deductibles, and exclusions under this insurance are some of the determining factors on how much an insurer will pay you in the event your tools or equipment of work gets stolen, lost, or damaged unintentionally.


When Can You Use the Tools and Equipment Insurance for Home Remodeling Contractors?

  • When you need your home remodeling tools and equipment to be repaired or replaced after they get stolen, lost, or damaged due to vandalistic acts

Add-Ons for This Remodeling Contractor Insurance

  •  Inland marine insurance-This add-on protects you from incurring costs of replacing and repairing damaged tools and equipment during transit

  • Loss of income coverage-In the event you lose income due to mechanical or electrical breakdown of the tools and equipment you use in performing your home remodeling project then this add-on will ensure that you get compensated for your lost revenue

  • Installation floater insurance-If your home remodeling project requires you to install building equipment on your client’s site then it would be best if you purchased this add-on as it protects you from incurring costs arising from destruction or damage of the equipment during the installation process

Commercial Auto Insurance for Home Remodeling Contractors

Commercial auto insurance for home remodeling contractors protects you from any legal liabilities that you may be subjected to following an accident caused by your commercial vehicle which may be a car, truck or van. This policy covers your home remodeling employees, your family members, and anyone else you designate as a driver of your insured motor vehicle. Important to note is that this policy does not cover tools and equipment that are not affixed to your insured commercial vehicle. This is due to the fact that they are not deemed to be part of the insured vehicle. This policy also doesn’t cover any accidents caused by a rental car despite it being used for your business operations. The components under the commercial auto insurance for home remodeling contractors include:

  • Bodily injury liability coverage-this coverage exempts you from being liable to pay a third party for bodily injuries after the occurrence of an accident.

  • Collision coverage-this component protects you from incurring costs of repairing your damaged vehicle if it gets hit or if it hits another object or vehicle.

  • Comprehensive coverage-this component protects you from repairing your commercial vehicle in the event it is damaged or destroyed by fire, acts of crimes such as theft or vandalism, and adverse weather conditions such as floods.

  • Medical payments coverage-this component helps pay for your medical expenses as well as your passengers’ medical expenses after the occurrence of an accident.

  • Property damage liability-this helps you offset any costs you are legally bound to pay if your commercial vehicle damages or destroys another person’s property

  • Uninsured and underinsured motorist coverage-this component helps pay for you and your passengers’ injuries in the event you get hit by an uninsured or underinsured motorist

Coverage Limits for Commercial Auto Insurance for Home Remodeling Contractors

The coverage limit under this policy ranges between $50,000 to $100,000. This coverage limit may go up or down depending on the exclusions, specificity of this policy, and your insurance provider.


Circumstances That May Necessitate You to Use This Remodeling Contractor Insurance

  •  In the event, your commercial truck destroys another person’s property

  • In the event, you become liable to pay for third-party bodily injuries

  • In the event, your commercial vehicle is damaged by another vehicle, object, fire, acts of crime such as theft and vandalism, and by floods

Add-Ons for Commercial Auto Insurance for Home Remodeling Contractors

  • Towing and labor coverage-Under this add-on, you are protected from paying the cost of towing your commercial vehicle from the scene of the accident to a repair shop after the occurrence of an accident

  • Rental reimbursement insurance-This add-on pays for the costs of hiring a rental car in the event your insured commercial automobile is not being used or is out of commission due to an accident

Workers Compensation Insurance for Home Remodeling Contractors

There are only two states in the USA where employers are not mandated to purchase worker’s compensation insurance for home remodeling contractors. Under this policy, you are shielded from paying your employees medical expenses, dismemberment, and disability benefits as well as death benefits to their beneficiaries that are caused by work-related injuries and illnesses. A certain percentage of your employee’s wages can be reimbursed to them as compensation for their lost wages following their work-related illness or injury. Important to note is that if your employee accepts to be compensated under this policy, they automatically lose their right to sue you.


Coverage Limits for Workers Comp Insurance for Home Remodeling Contractors

There is no set coverage limit on how much an insurer will pay you for the worker’s comp insurance for home remodeling contractors. The risks associated with your home remodeling business, its size, and where it is located are some of the factors used by home remodeling insurance companies to determine how much they will pay you in the event an insured risk occurs.

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Home Remodeling Contractor Insurance Cost?

Cost per Month Cost per Year Deductible
General liability insurance $150 $1,800 $0-$500
Commercial property insurance $170 $2,040 $500-$1,000
Business owner’s policy $220 $2,640 $1,000-$2,000
Workers comp insurance $210 $2,520 $1,500
Tools and equipment insurance $153 $1,836 $500-$1,000


The average home remodeling contractor insurance cost is $150 per month or $1,800 per year for a $1 million general liability insurance. Factors that affect the cost of premiums are claims history, deductibles, policy limits, and more. Below is a table clearly outlining the cost per month and the cost per year of the home remodeling contractor insurance as provided by some of the most competitive companies. This table also provides you with a summary of what each of the listed insurance companies is best for:

Cost per Month Cost per Year Best for
NEXT $120 $1,440 Contractors looking for cost-effective home remodeling insurance coverages
CoverWallet $120 $1,440 Home remodeling contractors who want to compare the available home remodeling insurance policies
The Hartford $145 $1,740 Home remodeling contractors whose jobs are associated with high risks or bodily injuries and property damage
Tivly $150 $1,800 Newly established or small-scale home remodeling contractors who are in need of basic insurance coverages
Thimble $113 $1,356 Home remodeling contractors who are working on short-term projects and are in need of temporary and flexible coverages
Hiscox $126 $1,512 Established home remodeling contractors who own or use expensive tools and equipment or who are working on high-value properties

Compare Cheap Home Remodeling Contractor Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Best Home Remodeling Contractor Insurance Companies

Below is a list of some of the best home remodeling contractor insurance companies. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability coverage. 


NEXT Home Remodeling Contractor Insurance

Pros

  • You are guaranteed a 10% upon purchase of bundled policies

  • You can customize your home remodeling insurance policies

  •  It’s possible to access your certificate of insurance online

Cons

  • Couldn’t find any

NEXT sells its bundled policies at a 10% discount. Some of the insurance provided by this A- AM Best rated home remodeling insurance company include: commercial auto insurance, business owners policy, workers comp insurance, general liability, and tools and equipment insurance.

Best for: Contractors looking for cost-effective home remodeling insurance coverage

Average cost: $120 per month

Our rating:10/10


CoverWallet Home Remodeling Contractor Insurance

Pros

  • You can get it’s quotes free and fast to process coverage  any day of the week

  • It provides its customers with free insurance advice

  • It’s possible to manage and purchase your home remodeling policies online

Cons

  • Not an insurance company but an insurance broker

CoverWallet is an insurance broker company that provides its customers with free quotes comparison. This dedicated insurance advisor is rated as a B by the Better Bureau Business (BBB). Its partnership with multiple insurance companies enables it to provide you with various home remodeling insurance policies.

Best for: Home remodeling contractors who want to compare the available home remodeling insurance policies

Average cost: $120 per month

Our rating: 10/10


The Hartford Home Remodeling Contractor Insurance

Pros

  • You stand to benefit from its added advantages

  • You can easily download and use its mobile app for claims report

  • It provides you with financial services

Cons

  • Limited add-ons

The Hartford is an A+ AM Best insurance company that provides its coverage to all 50 states of the USA. This 212-year-old company is known for its unrivaled customer service and its ability to provide its customers with discounted coverage. 

Best for: Home remodeling contractors whose jobs are associated with high risks of bodily injuries and property damage

Average cost: $145 per month

Our rating:10/10


Tivly Home Remodeling Contractor Insurance

Pros

  •  It’s time-saving as it helps match you with the best home remodeling coverages that suit your company’s needs

  •  You can access multiple remodeling contractor insurance from it

  • It provides you with fast quotes

Cons

  • No online quotes

This online insurance broker is not only cost-effective but also time-saving as it helps match you with the best home remodeling insurance policies that suit your company’s needs. Call now to compare quotes over the phone. 

Best for: Newly established or small-scale home remodeling contractors who are in need of basic insurance coverage

Average cost: $150 per month

Our rating: 8/10


Thimble Home Remodeling Contractor Insurance

Pros

  •  It provides you with an option of buying and managing your policies online

  • It can provide you with an hour of coverage

  • Its quotation process is fast

Cons

  • You can’t reach customer service by calling

Due to its outstanding customer service performance and its ability to provide its clientele with flexible and temporary insurance policies, the AM Best has rated Thimble an A. You can purchase the business owner’s policy, tools and equipment insurance, workers compensation insurance and general liability insurance for your home remodeling contractor company.

Best for: Home remodeling contractors who are working on short-term projects and are in need of temporary and flexible coverage

Average cost: $113 per month

Our rating: 8/10


Hiscox Home Remodeling Contractor Insurance

Pros

  • Anyone can use its straightforward website

  • You can access its remodeling contractor insurance through a mobile app

  • You stand to benefit from its discounted insurance policies

Cons

  • You cannot get its insurance coverage if you live in Alaska

Hiscox is an A+ rated insurer that provides its customers with discount incentives when it comes to its policies. Despite not being available in Alaska, this competitive insurance provider provides its clientele all over the 49 states with easy-to-purchase and easy-to-claim remodeling contractor insurance. Some of the home remodeling policies you can purchase from the 122 years old insurance company are: Business owner’s policy, general liability insurance, commercial auto insurance, tools and equipment insurance, and workers’ compensation insurance.

Best for: Established home remodeling contractors who own or use expensive tools and equipment or who are working on high-value properties

Average cost: $126 per month

Our rating: 8/10

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