Is your California home still insured during a major renovation?

Most of what it covered before. The model HO-3 is a homeowners form that Insurance Services Office (ISO) publishes for insurers to adapt. It covers the house and "materials and supplies" on or next to the property used to "construct, alter or repair" it.

It leaves out two things that matter in a remodel. One is theft "in or to a dwelling under construction," or of building materials, until the home is "finished and occupied."

The other is faulty "workmanship, repair, construction, renovation, remodeling" and faulty materials. The form still pays for damage that follows from bad work, such as a fire, unless another rule leaves that out.

A collapse is treated differently. The form covers a sudden collapse caused by defective materials or methods, if it happens "during the course of the construction, remodeling or renovation."

Your own policy may read differently, so ask your insurer to point you to these sections.

Tell it before work starts, in writing. California's standard fire policy is in Insurance Code section 2071. It says the insurer "shall not be liable for loss occurring ... while the hazard is increased by any means within the control or knowledge of the insured."

That rule gives way to terms "in writing added hereto," so written permission on your policy can change it. A homeowners policy need not copy the state form word for word. Neither the model HO-3 nor the FAIR Plan's dwelling policy has this clause, so read your own policy's conditions.

The required California disclosure form adds a second reason. It warns that failing to tell your insurer about "significant changes to your property may result in your home being underinsured."

Ask your insurer these questions in writing:

• Does my policy still cover the house, and the materials on site, during this work?
• Is any part of the work, such as opening walls or roofing, a reason to change or end coverage?
• Does the policy need written permission or an add-on while the work goes on?
• If we move out during the work, when does the vacancy rule start to count?
• What should my dwelling limit be once the work is finished?

California's standard fire policy also sets a 60-day line. After 60 straight days "vacant or unoccupied," the insurer is not liable for a loss. Written terms on the policy can change that.

The model HO-3 is kinder to a project. For its vandalism rule, "a dwelling being constructed is not considered vacant."

The FAIR Plan's dwelling policy is stricter. A home being built counts as vacant if it lacks the furniture "minimally necessary for human habitation." Its vandalism add-on stops covering after 30 days vacant or unoccupied.

Under the FAIR Plan's rules, a building empty for over a year is ineligible, though ongoing construction is an exception. The vacant house guide covers the vacancy rules in full.

A large project may. Builder's risk "protects structures and materials during new construction projects or renovations," in the words of the Insurance Information Institute, an industry group.

It is a separate policy for the project, not part of your homeowners policy. Ask your contractor whether the job will carry one, who buys it, and whose names it lists.

The FAIR Plan writes "course of construction" policies among its dwelling and commercial policies, under its rules approved March 27, 2026. Its application checklist, dated January 2021, says to "complete a Commercial application" for a dwelling "undergoing a significant remodel / renovation."

Ask your homeowners insurer how its policy and a builder's risk policy would share a loss, so the two do not leave a gap between them.

The Contractors State License Board (CSLB) tells homeowners to verify two kinds: workers' compensation and commercial general liability.

"In California, if a contractor has employees, they are required to carry workers' compensation insurance," the board says. Without it, "you could be financially liable" for a worker's injuries, and your homeowners policy "may or may not cover those costs."

Liability insurance is not required, the board says, but it "covers damage to your property." A licensed contractor must describe both kinds of insurance in your written contract.

Some trades must carry workers' compensation even with no employees, including concrete, heating and air conditioning, asbestos, roofing and tree service contractors.

Subcontractors need checking too. The Insurance Information Institute warns that workers who are not the contractor's full-time employees "may not be covered" by its workers' compensation policy. Before work starts:

• Look up the license on the CSLB website, where the license record shows its workers' compensation status.
• Ask for a certificate of insurance for workers' compensation and liability, and call the agency listed to confirm it.
• Ask each subcontractor for the same proof, or ask the contractor how its workers are covered.
• Keep copies of every certificate with your contract.

Your dwelling limit may need to rise. The Insurance Information Institute says to raise it before or soon after work begins, so the policy covers the cost to rebuild the improved house.

The Department of Insurance suggests keeping receipts and records of renovations and improvements, and asking your agent to raise the dwelling limit when that is right.

Then ask for a new rebuild estimate. Is your dwelling coverage enough? explains what that estimate must include.

If an insurer turns the home down while work is underway, what to do after a decline explains the next steps.