As Remodeling Rebounds, Caveats for the Homeowner

One part of the housing market experiencing a rebound that will probably continue even if the rest of the market remains sluggish is remodeling.

A recent report by the Joint Center for Housing Studies at Harvard University predicted that remodeling would rebound strongly this year after a three-year downturn. Annual growth in remodeling is expected to be around 8 percent.

In fact, the study found, the remodeling market held up far better than housing construction during the recession, with annual spending still close to $300 billion. But as the market for renovations picks up, it may be a good time to consider the problems that could arise.

A group of leading insurers said renovations are a constant source of large claims on homeowners’ policies. And among claims, fire is the most common cause.

Whether the homeowner wants to add a new kitchen or repair years of neglect, the cause of renovation problems is the same. Homeowners are concentrating on the outcome, not on managing the process. Any homeowner planning a sizable renovation should hire a contractor, for efficiency and safety, insurers say.

The one constant bit of advice from insurers is to tell them about your renovation before you begin it so they can tell you what to look out for and, of course, increase your coverage.

But the best policy is still vigilance. The top thing to monitor is oily rags, which strike fear into the hearts of risk assessors. These rags catch fire easily if they are not disposed of properly. The solution is to make sure the rags are put in a locked, fireproof box at the end of each day.

Second on the risk list is the debris from the welding and soldering equipment used on roofs or for installing plumbing and electrical wiring. A common disaster, Mr. Raphael said, happens when a pipe is welded but no one checks to see if any solder has fallen onto the debris below. It can smolder for hours and catch fire later that night.

Thinking about the disasters that can befall your home for the sake of a nicer, updated bathroom may put a damper on some people’s enthusiasm. It can be scary, but if certain things are done, it can be fun and successful.