Renovation NIGHTMARES: Ignoring This Costs Thousands!

Close up of a circular saw blade cutting through a piece of wood

Most homeowners lose thousands on renovations not because of bad luck, but because they ignore the insurance details hiding in plain sight.

Story Snapshot

Expert tips from Hippo Home Insurance’s Courtney Klosterman reveal how to avoid the top costly mistakes in home improvement.
Poor planning and insurance oversights are the root of most renovation disasters—and often preventable.
The surge in DIY projects has led to a spike in claims and regret, especially among new homeowners.
Insurtech firms now use data-driven advice and digital tools to help consumers dodge expensive errors before they happen.

Insurance Mistakes Are the Silent Budget Killers

Homeowners embarking on renovations often fixate on paint colors, flooring, and fixtures, but few scrutinize their insurance policies before swinging a hammer. Courtney Klosterman, Hippo Home Insurance’s Director of Communications, has seen countless people blindsided by gaps in coverage, leading to unexpected bills and bitter regrets. She emphasizes that confirming your policy details before you begin is not just wise—it’s essential to prevent financial fallout if something goes wrong.

Klosterman advises homeowners to notify their insurer about planned work, check for exclusions, and understand how upgrades can affect policy limits. Ignoring these steps means even a well-executed renovation can backfire, leaving you exposed if disaster strikes. Homeowners who skip the insurance review often find themselves paying out of pocket for damage, theft, or faulty workmanship that could have been covered.

Poor Planning Leads to Costly Blunders

Jumping into a renovation without a clear scope or budget almost guarantees mistakes. Klosterman warns that without a detailed plan, costs balloon and timelines stretch, straining finances and relationships. She urges homeowners to start with a comprehensive checklist: itemize every task, set realistic budgets, and factor in a buffer for surprises. Cutting corners on planning leads to missed permits, code violations, and botched projects that require expensive fixes.

Many DIY enthusiasts mistakenly believe they can save money by handling everything themselves. Yet, the data shows that amateur mistakes often outweigh savings, prompting more claims and headaches for insurers. Klosterman and Hippo recommend using licensed contractors, verifying credentials, and insisting on written contracts. These steps, though tedious, protect you from shoddy work and legal disputes, shielding your investment in the long run.

Digital Tools and Expert Advice Reduce Risks

Insurtech companies like Hippo are transforming how homeowners approach renovations by offering digital risk assessment tools and proactive alerts. Klosterman’s team leverages data from claims histories to flag common pitfalls—like uninspected electrical upgrades or roof replacements done without permits. Their advice is grounded in hard evidence: homeowners who consult experts and use technology to monitor progress report fewer losses and greater satisfaction.

The rise in catastrophic weather events and aging homes has made these tools more vital than ever. Hippo’s systems help users schedule maintenance, track warranties, and receive reminders about insurance deadlines. Klosterman believes this blend of technology and education is key to preventing preventable disasters, especially as renovation activity continues to surge in a volatile housing market.

Long-Term Impacts and Industry Shifts

Hippo’s approach reflects a broader shift in the insurance industry from reactive claims handling to proactive loss prevention. By educating homeowners and integrating risk management into every stage of renovation, they aim to reduce claims and improve customer satisfaction. Contractors now face stiffer requirements for licensing and compliance, raising the bar for quality and accountability.

The ripple effects extend beyond individual homeowners. Fewer claims mean insurers can offer better rates, while increased consumer confidence encourages more people to invest in their homes. Regulators are watching closely, with potential changes to licensing laws and insurance mandates on the horizon. Ultimately, Klosterman’s message is clear: the smartest renovation decision is to treat insurance as a foundational part of the process, not an afterthought.