When adding features to your home — be they additional bedrooms, a swimming pool or an expansion of the kitchen — the question of home insurance can be a little confusing. You don't want your new additions to be left unprotected, but can you insure something that isn't even finished yet?
Here's the short answer: Any additional insurance that needs to be bought will typically be purchased after completion of the construction. However, you need to talk to your insurer as you're beginning your project — rather than waiting until it's finished — to let them know. One of the reasons for this is because the existing building may suffer damages in the process of building the additions or remodeling a room, and your insurer expects to be kept up to date on these developments. Another reason is that your insurer may be able to alert you of any new liability concerns that you are inviting by turning the home into a construction site, and they will help you to get covered accordingly.
Liability is one of the big concerns here. If someone falls off your new patio, and your insurer didn't even know you had a patio, they're not going to cover the damages.
Throughout the process, it's a good idea to keep receipts and a photo document, so that your insurer knows what the policy is protecting. Also, have your home appraised once the updates are finished, so that your insurer will know the actual market value of your home.
Your best bet is going to be to keep your insurer updated whenever you are making decisions that may affect your home insurance policy. Whether or not you need to buy more protection right away, your insurer will help to guide you on the exact steps that need to be taken.