Renovation NIGHTMARE—Homeowners Stunned By One Missed Step

Plumber adjusting the settings on a water heater

Every year, thousands of homeowners unwittingly sabotage their own home improvement dreams—and wallets—by overlooking one simple fact: the biggest renovation risks are the ones you never see coming.

Story Snapshot

Many costly renovation mistakes are preventable with proper planning and insurance awareness
Expert advice from Hippo’s Courtney Klosterman bridges practical tips with overlooked insurance risks
Pandemic-era DIY projects and climate events have made risk mitigation critical
Proactive education and digital tools are shifting how insurers and homeowners approach renovations

The Hidden Dangers Lurking in Home Improvement Projects

Home improvement projects, often started with optimism, can quickly morph into expensive cautionary tales. Courtney Klosterman, Home Insights Expert at Hippo Insurance, describes how homeowners regularly fall into traps—unplanned expenses, unvetted contractors, and skipped insurance checks—that transform a simple kitchen remodel into a financial headache. The rise in DIY enthusiasm since the pandemic has only increased these risks, with many owners ignoring the fine print until it’s too late.

Klosterman’s advice lands in the midst of a volatile housing market and relentless climate events. Storms, floods, and aging infrastructure are colliding with a spike in renovation activity, leaving even seasoned homeowners exposed. The pandemic didn’t just inspire home offices and new decks—it also triggered a surge in insurance claims from botched electrical work, water leaks, and structural missteps. The mistake most people make isn’t choosing the wrong paint color; it’s failing to anticipate what can go catastrophically wrong.

Expert-Backed Strategies for Avoiding Financial Disaster

Success begins with a plan. Klosterman urges every homeowner to start with a realistic budget and a brutally honest assessment of their own skills. She warns against the fallacy of savings through DIY when mistakes can multiply costs down the line. Thorough vetting of contractors—checking credentials, insurance, and references—remains non-negotiable if you want to sleep at night. Failing to confirm whether a renovation is covered by your insurance policy or requires updates to coverage is another classic blunder that can turn a project into a money pit.

Digital risk assessment tools offered by insurtech firms like Hippo have become vital. These platforms help homeowners identify hidden vulnerabilities before breaking ground, whether it’s the risk of electrical overloads or the need for flood protection. Klosterman advocates for leveraging these technologies alongside old-fashioned common sense: read every contract, get written estimates, and never assume your insurance policy will automatically cover new additions or upgrades.

The Industry’s Shift: From Crisis Response to Proactive Protection

The insurance industry isn’t just reacting to disasters anymore—it’s trying to prevent them. Hippo’s public campaigns and educational resources reflect a broader move toward consumer empowerment. Their strategy: if homeowners understand the most common pitfalls, fewer claims will follow, benefiting both the company and its clients. Contractors, meanwhile, face new scrutiny as educated consumers demand better documentation and compliance, raising the bar for quality and professionalism.

Regulators and insurers alike are watching as proactive risk management becomes the new normal. The frequency of catastrophic weather events has forced the industry to rethink not only claims processing but the very definition of home protection. As homeowners integrate risk assessment into project planning, the days of “fix it later” are fading, replaced by a culture of “prevent it now.”