After a fire or flood, your first call is likely to your insurance company. Your second? Probably to a contractor like us.
And one of the biggest questions we hear at NBC is:
“Will my insurance pay for everything?”
We wish the answer were simple — but it’s not. The truth is, restoration insurance covers a lot — but not everything. And what it doesn’t cover often catches homeowners off guard.
Here’s a clear, honest breakdown of what’s typically covered by insurance during a fire or water restoration project — and what’s considered a homeowner upgrade (meaning, you pay for it).
✅ What Insurance Usually Covers After a Fire or Flood
Most standard homeowners insurance policies (HO-3 or HO-5) cover what’s damaged or destroyed — up to your policy limits.
Here’s what’s normally included:
1. Structural Repairs
Your insurance should cover the cost to rebuild or repair damaged parts of your home — walls, flooring, ceilings, roofing, framing, insulation, electrical, plumbing, etc.
But here’s the key: They’ll only pay to restore it to its original condition, not to upgrade it.
2. Smoke, Soot, or Water Mitigation
In the case of a fire, insurance covers smoke and soot cleaning for walls, ceilings, vents, and sometimes personal belongings.
For water damage, it typically covers water extraction, drying, and mold prevention.
3. Contents / Personal Property
Clothing, furniture, appliances, and electronics are often covered — but you’ll need an itemized inventory with proof of ownership.
4. Temporary Living Expenses (ALE)
If you can’t live in your home during restoration, insurance usually covers Additional Living Expenses (ALE) — hotels, meals, and temporary rentals — but these have limits and duration caps.
🚫 What Insurance Doesn’t Cover (and What You Pay For)
This is where many homeowners in Charleston run into surprises. These items are typically considered upgrades or exclusions by insurance providers:
1. Code Upgrades
If your older home needs to be brought up to current building code during restoration, your policy may not cover the added cost — unless you have an Ordinance or Law endorsement.
Example: You have older wiring, no AFCI or GFCI outlets or breakers in the home. Insurance pays to replace what you had — but not to bring it up to current code.
2. Modern Materials or Layout Changes
Want to use this opportunity to upgrade your kitchen countertops from laminate to quartz? Switch from carpet to hardwood?
That’s considered a personal upgrade, and insurance will only reimburse for “like kind and quality.” The upgrade cost is yours.
3. Pre-Existing Damage
Insurance won’t pay to fix things that weren’t caused by the incident — like termite damage, old leaks, or mold that predated the fire or flood.
4. Custom Work or Remodeling Add-Ons
If you choose to knock down walls, add a bathroom, or expand a kitchen during the rebuild, you’re entering full remodel territory — not covered under a restoration claim.
Real-World Example (Charleston Client)
Let’s say you had a kitchen fire. Here’s how the breakdown might look:
| ITEM | Covered by Insurance | Upgrade (Out-of-Pocket) |
| Cabinet replacement (same layout) | ✅ | |
| Switching to custom cabinets | ❌ | |
| Granite countertops (to replace laminate) | ❌ | |
| Smoke damage to ceiling and walls | ✅ | |
| Adding recessed lighting during rebuild | ❌ | |
| Replacing damaged vinyl flooring | ✅ | |
| Upgrading to hardwood | ❌ |
How New Beginnings Helps You Navigate it.
We’ve seen homeowners across the Lowcountry get stuck with unexpected bills — not because they made bad choices, but because no one explained the difference between coverage and upgrades.
Here’s how we help:
- 📝 We compare the insurance scope of work with your goals.
- 💬 We show you what’s covered vs. upgrade — before work starts.
- 💸 We help you prioritize work if you’re on a budget.
- 🧾 We provide transparent, line-item estimates — no vague lump sums.
📍 Charleston-Specific Advice
Charleston homes — especially in historic districts — often need code upgrades (electrical, flood zones, elevation compliance). Make sure your policy has the right riders or endorsements. If you’re unsure, we’re happy to review it with you.
Final Thoughts: Know Before You Build
When your home is damaged, restoration is non-negotiable. But how you restore — and what you choose to upgrade — is up to you.
The best time to understand the cost breakdown is before hammers swing. At New Beginnings Construction, we’ll help you get it right — and avoid financial surprises.
📐 Want a fast ballpark quote?
Try Our Estimator Tool
Use our free tool to estimate your project in under 90 seconds.
Use our free tool to estimate your project in under 90 seconds.
📍 Serving the Charleston Area
We remodel kitchens across Charleston, Summerville, Goose Creek, Mount Pleasant, Johns Island, and surrounding Lowcountry communities.
Let’s Start Planning Your Project
Whether you’re dreaming of a full custom kitchen, interior remodel or looking for a fresh update on your exterior, New Beginnings Construction is here to guide you every step of the way. Let’s build a space that brings beauty, function, and value to your home.
Flexible Financing Options Available
We offer affordable financing options, including 0% interest plans and staged payments. Ask us how to finance your project without the stress
.
📞 Call us today or request your free consultation
Remodeling with purpose. Built on integrity.
