6 DIY Projects That Insurance Companies Secretly Hate

July 5, 2025

Home improvement is a point of pride for many people. Doing it yourself can save money, give you a sense of accomplishment, and let you customize your space. But not every DIY project is a good idea, especially when it comes to your home insurance. Some projects can actually increase the risk to your home, and insurance companies take note. If you’re not careful, you could end up with higher premiums, denied claims, or even canceled coverage. Here are six DIY projects that insurance companies secretly hate, and what you should know before you pick up that hammer.

1. Electrical Work Without a Licensed Electrician

DIY electrical work is tempting. You might think swapping out outlets or adding a new light fixture is simple. But insurance companies see it differently. Faulty wiring is a leading cause of house fires. If you do electrical work yourself and something goes wrong, your insurer might not cover the damage. Many policies require that licensed professionals perform electrical work. If you skip permits or inspections, you could be violating your policy. Even small mistakes can lead to big problems. For example, a loose wire behind a wall can spark a fire months later. If the insurance company finds out you did the work yourself, they might deny your claim. Always hire a licensed electrician for anything beyond changing a light bulb. It’s safer, and it keeps your coverage intact.

2. Removing Load-Bearing Walls

Open floor plans are popular. Many people want to knock down walls to create more space. But removing a load-bearing wall is a major structural change. If you do this without a structural engineer or proper permits, you risk the stability of your home. Insurance companies hate this because it can lead to collapsed ceilings or worse. If your house suffers damage because of an unapproved structural change, your claim could be denied. Even if nothing goes wrong right away, an inspector might flag the change during a future claim or sale. Always consult a professional before making structural changes. It’s not just about looks—it’s about safety and insurance.

3. Installing Wood Stoves or Fireplaces

Adding a wood stove or fireplace can make your home cozy. But it also increases fire risk. Insurance companies are wary of DIY installations because improper venting or placement can cause fires or carbon monoxide poisoning. Many insurers require professional installation and inspection for wood stoves and fireplaces. If you install one yourself and there’s a fire, your claim might not be covered. Some companies even raise your premium or refuse coverage if you have a wood stove. Before you install, check your policy and local codes. A professional installation might cost more, but it protects your home and your insurance.

4. Building Decks or Additions Without Permits

A new deck or room addition can add value to your home. But if you build without permits or skip inspections, you’re taking a big risk. Insurance companies want to know that new structures meet safety codes. Unpermitted work can lead to denied claims if there’s an accident or damage. For example, if your deck collapses during a party and someone gets hurt, your liability coverage might not apply. Some insurers will even cancel your policy if they find out about unpermitted additions. Always get the right permits and inspections. It’s not just about following the rules—it’s about making sure your insurance works when you need it.

5. DIY Plumbing Projects

Fixing a leaky faucet is one thing. However, running new pipes or installing a bathroom yourself is another matter. Water damage is one of the most common and expensive home insurance claims. Insurance companies recognize that DIY plumbing often results in leaks, floods, or mold. If you do plumbing work without a licensed plumber and something goes wrong, your insurer might not pay for the damage. Some policies specifically exclude water damage from unlicensed work. Even a small leak behind a wall can cause thousands in repairs. For big plumbing jobs, always hire a pro.

6. Roof Repairs and Replacements

A leaky roof is a headache. It’s tempting to patch it yourself or even replace shingles to save money. But insurance companies are strict about roof repairs. Improper installation can lead to leaks, mold, and structural damage. If you do the work yourself and there’s a problem, your insurer might deny your claim. Some companies require proof that a licensed roofer did the work. If you can’t provide it, you may be liable for expensive repairs. Roof work is dangerous, too. Falls from roofs are a leading cause of injury. For your safety and the protection of your insurance, hire a professional for roof repairs and replacements.

Protect Your Home and Your Coverage

DIY projects can be rewarding, but they come with risks that insurance companies watch closely. Electrical work, structural changes, wood stove installations, unpermitted additions, plumbing, and roof repairs are all projects that can affect your insurance. If you perform these tasks yourself and something goes wrong, you may face denied claims or higher premiums. Always review your policy before undertaking a major project. When in doubt, hire a licensed professional. It’s the best way to protect your home and your insurance coverage.

Have you ever had a DIY project affect your insurance? Share your story or tips in the comments below.

How Do You Reduce Your Home Insurance Premiums?