How to Protect Your Budget if Your Reno Goes Horribly Wrong


It doesn’t matter how big or small it is — any renovation is cause for excitement.

It means you get to say goodbye to questionable design choices from the previous homeowner and say hello to new countertops, bathroom fixtures, and floor plans.

But that’s only if things go according to plan. If they don’t, well, you could be facing a reno that’s gone off the rails — and your budget.

Sometimes, things go wrong. You might as well be prepared for when they do.

Make Sure You Hire an Insured Contractor

You stand to save some money up front by choosing an uninsured contractor. But this decision could take a bite out of your budget later on if your builder makes a costly mistake.

Insurance is one of the most important accreditations a contractor can have. It means they assume responsibility for any issues with your reno — from personal injuries to property damages.

So if one of their employees hurts themselves in your home, you won’t be held responsible. If they cause an accident that creates structural damage to your house, your contractor must pay for the repair.

Look for contractors that have a license, as well as liability and work compensation insurances. This should be information they’re willing to share freely. It proves they value their work and their employees.

If a contractor acts cagey anytime you ask about licenses or insurance, consider this a red flag. Skip over them for a contractor who’s willing to give you what you ask for.

You may end up spending more on a builder with insurance, but it’s worth your peace of mind. If something goes wrong, you won’t be on the hook for an unexpected bill!

Tap into a Line of Credit

You can’t blame everything on your contractor. Sometimes, the problem slowing down your renovation is an existing issue with your home.

Let’s say you have plans to tear down your shower unit, so you can relocate it to the other side of the bathroom. But in ripping down the tiles, your contractor reports you to phave black mold.

That’s not something you can always predict—or ignore! Removing black mold is a matter of safety, so you’ll have to tackle it regardless if it’s something you budgeted for.

If your reno savings fall short, you can make up the difference by tapping into a line of credit. A line of credit acts as a simple safety net when unexpected expenses upset your plans.

It can be a quick and simple solution, especially if you check online for lines of credit. Online lines of credit offer a convenient way to manage your money without contacting a brick-and-mortar bank.

Don’t worry if you have a low credit score. You can find lenders, including CreditFresh, offering lines of credit for any financial profile if you’re willing to look.

Visit to see how people subprime credit have a chance at getting what they need. Research your options, and you’ll find a line of credit that fits your finances.

Bottom Line: Be Prepared

In the best-case scenario, you won’t need to rely on insurance or tap into a line of credit. But don’t mistake this as a reason to skip out on either.

There’s a chance you could be facing the worst-case scenario when it comes to your reno. You’ll appreciate having a backup if things go wrong, so make sure you plan for the worst. It could help you save a lot of money!


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