13 costly home renovation mistakes to avoid

Turning a house into a home can feel incredibly rewarding. In fact, nearly two-fifths (39%) of homeowners from Hippo’s annual Housepower Report revealed home upgrades were one of their key priorities.

But renovating can be tricky even for homeowners with experience—let alone someone without that technical knowledge.

Before you start your next project, consider these tips to help you avoid costly home renovation mistakes.

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1. Not reviewing homeowners insurance coverage

It’s important to determine how much homeowners insurance you need for your unique circumstance. Renovations or upgrades could impact your insurance coverage limits and might not be covered by your existing policy.

Understanding the difference between maintenance, repairs, and renovations can also help inform your decisions. Insurance coverage addresses each of these items differently:

Maintenance involves routinely inspecting and servicing your property’s systems. This can help you save on insurance costs by allowing you to identify issues early (before they become big problems) and avoid claims altogether.
Repairs, on the other hand, are fixes for damage caused by unexpected events like storms or accidents, and these are often covered by insurance policies (though with potential deductibles or exclusions).
Renovations, which involve substantial home improvements, generally aren’t covered by standard homeowners insurance. Major renovations might require specific coverage like builder’s risk insurance.

It’s critical that you review your homeowners insurance policy carefully to understand its coverage for repairs and renovations—and consider additional coverage if necessary.

2. Underestimating the project scope and cost

Starting a DIY project without understanding the full scope of work is a common home renovation mistake.

If you’re not clear on the steps, timeline, or expenses needed to achieve your goal, pause your project and reassess. A realistic understanding of the project’s complexity helps you avoid running out of resources or hitting other roadblocks in the middle of a project.

These roadblocks could include changing your mind regarding important decisions halfway through the project, underestimating the amount of demo work required, or the cost of materials being higher than expected.

To help avoid these pitfalls, here are some key steps to take before diving into your next home renovation:

Clearly define what you hope to achieve with this renovation. Is it improving aesthetics, increasing functionality, or adding home revalue? The answer to this question will be your north star during the project and help guide your decision-making process.
Make a list of features you want to have and features you need to have. This will help cut down on items that are not necessary if you run into any budgetary or time constraints.
Do your research and ask the professionals. Rely on reputable sources before starting a home renovation, and make sure the websites, contractors, and other sources you use are certified or knowledgeable.
Be honest about your own skill level. It’s okay if you are confident in taking on only parts of the project but not others. Know your limits and recognize when it is time to call a professional. Check out tip number 11 and 13 for more details on how and when to call in the cavalry.

3. Not planning for surprise issues

You may not know everything that’s going on behind your walls, but it’s important to be prepared for surprises—especially if you live in an older home.

These issues could include anything the initial home inspection missed, like faulty wiring, structural issues, mold, and pest damage.

They can also range in severity and cost, so it’s important to have extra time (and budget) in your DIY project plan to help limit their disruptiveness. Taking care of these hidden surprises will help improve your home more than ignoring the issue.

Here’s how you can be more prepared:

Before starting, inspect the project area for signs of water damage, mold, pests, structural issues, etc.
Create a contingency budget by allocating a portion of funds for unexpected costs. The amount should depend on the scale of your project, but 5-10% of your total project budget can be a good rule of thumb.
Research your home’s age and history to help uncover potential problems common to homes built in your time period. These could include things like faulty wiring or lead paint.
Plan for delays so you’re not surprised if you run into setbacks. A flexible timeline can help manage stress and avoid mistakes that come with rushing a project.

4. Ignoring permits and inspections

It’s important to consider if your project will alter the footprint of your home. If it does, you could require a permit or inspection before getting started.

According to Renofi, skipping a permit or inspection could result in multiple consequences, from lost time to costly fines. It could also damage your home’s resale value, void your homeowner’s insurance, or even lead to potential legal trouble.

Projects that could require permits include cutting holes for new windows and removing or adding plumbing or electrical systems.

Consider these tips before you kick off your next project:

Each city has its own rules about what requires a permit. Check with your local building department to confirm whether or not this applies to your specific DIY project.
If you do need a permit, the first thing you can do is complete a permit application from your local building department.
Filling out a permit typically involves fees. According to Bankrate, these permits can range from $50 to $2,000. Larger upgrades can cost more than smaller projects.
Schedule any inspections that are required for your specific permit. These inspections can occur at various points in the project to ensure you comply with your local building codes.
Once everything else is complete, you must wait to gain approval from your municipality. This timeline can vary depending on the project’s complexity and location.
Apply for a permit as soon as possible. It’s important to start the process early (at least a few months before your project begins) and factor that time into your overall project plan.

5. Improvising with incorrect materials and tools

To save time or money on a project, you might try improvising tools or materials. While this can seem like a good idea in the short term, it can lead to wasted time as you struggle with frustrating inefficiencies.

Materials or tools could break, causing subpar results and backtracking to correct the mistake. Worse yet, it could also lead to home damage, re-doing parts of the project, or even safety hazards.

These tips can help you invest in the right tools and quality materials upfront for an ultimately more successful DIY project.

Create a detailed project plan with information on the steps for each part of a project. This will likely take the most time, but it’s helpful to know what tools and materials you will need down the line.
Make a list of all the tools and materials you need to complete the project on time, on budget, and safely and effectively.
Take inventory of the tools you already own. Compare this to the list you created earlier and identify any gaps.
Once you know what tools you need, consider if these are more specialized tools you’ll only use once or if they’re worth the long-term investment. See if family, friends, or your local home improvement stores would be willing to rent or loan their tools.
Avoid choosing the cheapest option if it’s not the best choice for the job. While finding lower-cost tools or materials is budget-savvy, don’t let it consume your entire focus and compromise the safety or quality of your home.

6. Neglecting safety precautions

Ignoring safety precautions is one of the top home renovation mistakes to avoid. It can lead to serious consequences like potential bodily harm, damage to your home, or incurring expensive repair costs.

In addition to using safety gear and following proper procedures, keeping up with your home’s preventative maintenance schedule is a great way to help reduce the chance of accidents during a DIY project and beyond.

Specific safety precautions vary depending on your project, but consider these widely applicable tips before you turn on the power tools or pick up a hammer:

Wear safety glasses when using power tools, cutting materials, or working with chemicals.
Use tools according to the manufacturer’s instructions and inspect them for damage before or after use.
If you’re working on an electrical system, make sure the power is turned off and use insulated tools.
Inspect ladders beforehand, and maintain three points of contact while climbing to help ensure stability.
Keep a fire extinguisher nearby and know how to use it, especially if there is an elevated risk of generating sparks or overloading circuits.
Open windows or use fans for ventilation when working with paints, solvents, or power tools.

7. Not properly disposing of debris

Neglecting proper debris disposal during a DIY project can have financial, environmental, and even legal consequences.

Improperly discarded materials can cause pollution and impact local wildlife. There are often strict guidelines governing waste removal and disposal, and violating them can lead to costly fines. Some debris, like old paint or certain appliances, can pose health risks if handled incorrectly.

Before you start demoing for a project, make sure you have a plan on how you’ll properly remove the debris and waste from your property:

Research local regulations for waste disposal, including disposal sites for specific materials and any required permits.
Simplify the disposal process by categorizing project debris into categories like standard waste, recyclable or reusable materials, donatable items, or hazardous waste.
Handle hazardous materials like paint, chemicals, and electronics with care. Contact your local waste management for proper disposal methods.
Consider hiring a junk removal service to handle debris removal efficiently and responsibly. Properly vet the company and ask for recipes to confirm that debris was taken to the proper channels for disposal.

8. Prioritizing design aesthetics over function

Creating a home that looks beautiful is an important part of loving where you live. However, neglecting practical considerations can result in a space that is ultimately frustrating or inefficient to use.

For example, choosing a visually striking but poorly ventilated kitchen hood might lead to unpleasant odors. And a layout that looks stunning could actually hinder daily routines by not offering enough space.

With these steps, you can help avoid design flaws without undermining the overall aesthetic of your home:

Create a list of essential functions for the space before considering aesthetic elements. What do you need it to achieve beyond looking beautiful?
Research materials, finishes, and layouts to help determine if they are both aesthetically appealing and realistic for your home or lifestyle.
Experiments with different layouts to see which options work best. Don’t be afraid to experiment if it’s within scope!
If applicable to your project, consider the importance of storage in your space. These solutions can enhance functionality and help reduce clutter.
Focus on the details like proper lighting and comfortable seating. This can help drastically improve someone’s overall experience.

9. Underestimating how much of the renovation you can DIY

The key to a successful DIY project lies in strategic planning. Creating a detailed home maintenance plan can help identify tasks you can complete yourself or where you can develop new skills.

According to our 2023 Housepower Report, 38% of surveyed homeowners reported that learning these new maintenance skills increased their sense of pride in their home and/or increased their motivation to better maintain their home.

If you’re embarking on DIY projects as a way to meet your financial goals, it’s important to be honest with yourself about whether or not you should tackle a project on your own. Homeowners who bite off more than they can chew run the risk of costly errors that require professional repairs. This can quickly overshadow the potential cost savings of DIY.

Check out these tips to help you decide when it’s time to DIY or call in an expert:

Honestly evaluate your skills and experience level when it comes to the specifics of your project.
Break down the project into smaller tasks. Identify which tasks you can confidently handle and which require specialized skills.
Weigh the potential cost savings of DIY against the potential costs of mistakes or delays. Factor in the cost of renting tools or purchasing specialized materials.
Consider your available time and the project timeline. If time is limited, hiring professionals might be more efficient.
Some tasks, like electrical or plumbing work, require specific licenses and expertise. Prioritize safety by hiring professionals for these tasks.
Be aware of local building codes and permits. Professionals can often navigate these complexities more efficiently.
For tasks that significantly impact the project’s outcome (e.g., foundation work, roofing), consider hiring professionals to ensure quality and longevity.

10. Setting an unrealistic timeline

Just like setting a proper budget is essential, failing to set a realistic timeline for a DIY project is a common pitfall that can lead to significant costs and frustrations.

Underestimating how long renovations will take can result in project delays, which can disrupt daily life and lead to increased stress. Rushing to finish a project can also compromise the overall quality of work and increase the likelihood of errors.

You can use the following steps to help create a more realistic timeline from the start of your project:

Divide the project into smaller, more manageable tasks for a clearer picture of the overall workload.
Account for potential setbacks like material shortages, weather conditions, or tool malfunctions.
Avoid overestimating your own productivity. Review your available time and working speed realistically.
Consult with professionals or experienced DIYers for insights into project timelines.
Try using calendars, project management apps, or spreadsheets to help visualize all the tasks in your timeline and track progress.
Identify critical tasks (like gaining the right permits) and focus on completing those items first. This helps maintain project momentum.
Build flexibility into your schedule and prepare for setbacks.

11. Hiring a professional without proper research

If you decide to outsource specific parts of your DIY project, choose the right professional for the job. Rushing to a decision without thoroughly researching their references, portfolio of work, and licensing can result in costly home renovation mistakes.

That includes subpar workmanship, project delays, budget overruns, and even legal complications. Following these steps can help you cover your bases and choose the best partner for your DIY project:

Clearly outline the tasks you can take on and the tasks for a professional.
Ask friends, family, or your larger community for referrals to trusted professionals.
Verify that the contractors you’re considering have the necessary licenses and insurance to protect your interests.
Request a portfolio documenting the professional’s previous projects. Check to see if this work aligns with your goals or desired style.
Don’t be afraid to conduct informal interviews to determine their communication skills and professionalism.
Ask for a detailed contract that outlines the project scope, timeline, payment terms, and any applicable warranties.

12. Working off the wrong measurements

Incorrect measurements are a common and costly DIY mistake. Human error can result in the need for replacement materials and reworking the project, which creates financial losses or dreaded project delays. Working hard on a task only to realize it was a wasted effort can feel incredibly frustrating.

Consider these tips before kicking off your project to help avoid this common pitfall:

Don’t “eyeball it” when it comes to measurements. Use the correct tools like a tape measure, ruler, or laser distance meter.
Measure twice, cut once. This is a common phrase among DIYers and helps ensure you’re careful now to avoid headaches down the road.
Make sure you’re measuring on an even surface that’s clear of obstacles.
If you can, lean on another person to review your work and help catch any errors you miss.
Be patient and methodical when it comes to taking measurements. Rushing this phase can lead to mistakes.
Be careful if you’re converting between different measurement systems. Double-check your calculations to help avoid mistakes.

13. Trying to tackle too many spaces at once

It’s tempting to take on multiple projects at once to speed up the DIY process. However, juggling multiple projects at once can easily lead to overwhelm. This can cause errors, mismanagement of resources, and a decline in the project’s overall quality.

Don’t fall into the trap of doing too much, too fast. These steps can help avoid overextending yourself and your project scope:

Consider how each project would improve your quality of life or home quality. Prioritize the areas that require the most urgent home upgrades.
Avoid biting off more than you can chew by setting achievable goals for each project.
Divide larger projects into smaller, more manageable sub-projects, and only take on one area at a time without thoroughly considering the scope of work for each.
Dedicate specific time blocks for each project to prevent feeling rushed or stressed.
Organize materials for each space to avoid confusion and clutter.
Avoid burnout by scheduling breaks between projects to rest and recharge.

Author: Courtney Klosterman is home insights expert at Hippo, the home insurance company focused on proactive protection.