What happens when you remodel your home but don’t get a permit?

Home prices have soared sky high in recent years. Between that and the fact that mortgage lenders have been charging bundled fees to borrow, some people are choosing to renovate their existing homes rather than buying a new home.

More than half of Americans say they don’t want to sell their current home because it would mean giving up low interest rates on their existing mortgage, according to a late 2023 survey by CRAFTSMAN. And 65% of homeowners see home improvement projects as a viable alternative to moving and buying a new home.

If you’re thinking of going down this route, you may be inclined to do the renovation work yourself to save money. And you may decide to skip the permitting process. That way, you won’t have to deal with potential delays or pay permit fees charged by the town. According to Angi, building permit costs can range from $460 to $2,776, depending on location and complexity of the job.

However, modifying your home without permission can be very counterproductive. Negative consequences that may occur include:

1. You could face costly fines

If you do work that requires a permit, you may incur costs in the form of fines if your town finds out. And sometimes it takes a nosy neighbor to make that happen.

Of course, the severity of the punishment will depend on where you live and the offense in question. But if not getting a permit is saving you money, remember that you could end up paying more if you get caught.

2. You may have trouble selling your home.

When selling a home, you will usually need to obtain a certificate of occupancy to present to the seller. This usually means having your home inspected by city officials.

If, during the inspection, records are found showing that the official performed work without the relevant permits, the issuance of the certificate may be refused. result? You may have a really hard time selling your home.

3. Homeowners insurance may not cover damage claims.

During the process of renovating your home, whether you do the work yourself or hire a contractor, there is a chance that things can go wrong. In many cases, homeowners insurance will pay for damages incurred during a failed renovation. However, if you don’t have the proper permission, your insurance company may refuse to pick up the tab.

Likewise, let’s say your renovation went off without a hitch, only to have some work done incorrectly that ultimately caused damage to your home. If the project in question does not have a permit attached, your home insurance company may not pay.

4. There is a risk of damage to your home or worse.

The main reason cities require renovation permits is because part of the process includes inspections to ensure the work was done correctly. By skipping permits and related inspections, you run the risk of performing improper work.

This may lead to water or fire damage depending on the nature of the renovation. There can also be structural impacts that not only cause damage to the home, but even worse, threaten the safety of residents.

When undertaking renovations that seem simple enough, there may be a tendency to skip permits. However, if your project requires a permit in your town, you likely have a reason to obtain that permit. So the best option is to pay the fee and go through the inspection process. It may seem like a hassle at first, but if you don’t go through the right channels, you risk creating an even bigger hassle.