Is it covered or is it an upgrade?
Covered vs. Upgrades
Insurance policies pay for covered repairs, not elective improvements. Understanding the difference between covered damage and homeowner-requested upgrades helps keep your project organized while allowing repairs and renovations to be completed at the same time.
What Is a Covered Repair?
A covered repair is work the insurance company determines is necessary to restore damage caused by a covered loss. The scope of covered repairs depends on your insurance policy, the cause of the damage, and the conditions identified during the claim process.
Covered repairs may include:
- Replacing damaged drywall
- Structural repairs
- Flooring replacement
- Cabinet repairs or replacement
- Painting affected areas
- Electrical or plumbing repairs
- Code-required work when covered by the policy
What Is an Upgrade?
An upgrade is any improvement you choose that goes beyond restoring the property to its pre-loss condition.
Common upgrades include:
- Premium flooring
- Custom cabinets
- Quartz or stone countertops
- Luxury plumbing fixtures
- Lighting upgrades
- Layout changes
- Additional remodeling projects
Upgrades are generally the homeowner's responsibility unless specifically covered by the insurance policy.
Can Covered Repairs and Upgrades Be Done Together?
Yes. Many homeowners choose to complete improvements while insurance repairs are already underway. Combining the work often reduces disruption by allowing everything to be completed during a single construction project.
A contractor experienced with insurance claims can clearly separate covered repairs from homeowner-requested upgrades so both portions of the project remain organized.
Why Proper Documentation Matters
Keeping covered repairs and upgrades properly documented helps everyone understand what work is being paid by the insurance company and what work is the homeowner's responsibility. Clear documentation also helps avoid confusion throughout the project.
Benefits of Combining the Work
Completing repairs and upgrades together may provide several advantages:
- One construction schedule
- Less disruption to your home
- Better coordination between trades
- Opportunity to modernize finishes
- More efficient project management
- Improved long-term value
Explore More Resources
Water Damage Claims
Project Case Studies
Water Damage Claims
Understand the insurance claim process for wind, hail, and storm damage, from emergency protection through final repairs.
Fire Damage Claims
Project Case Studies
Water Damage Claims
Understand the insurance claim process for fire damage, from emergency protection through final repairs.
Claim Supplements
Project Case Studies
Project Case Studies
Discover why additional damage is often found after demolition and how supplemental claims help document necessary covered repairs.
Project Case Studies
Project Case Studies
Project Case Studies
See real Riverbend projects that demonstrate how we've helped homeowners recover from water, fire, and storm damage throughout the New Orleans area.
Financing disclosure
Before You Proceed:
Financing options are provided by third-party lenders such as Hearth. Riverbend Renovation LLC is not a lender, broker, or agent of any financing provider and receives no compensation for referrals.
All loan terms, rates, and approvals are between you and the lender. We recommend reviewing terms carefully and consulting your own financial advisor before proceeding. Your project’s payment schedule and obligations to Riverbend Renovation are not contingent on your loan being approved or funded.
Click “Learn More” only if you understand and accept this.