skip to main content
Travelers Logo
  • About
  • Careers
  • Agents
  • Investors
  • Sustainability
  • Contact Us
  • For Individuals
    • Overview
    • Products
      • Car
      • Home
      • Renters
      • Condo
      • Landlord
      • Boat & Yacht
      • Flood
      • Motorcycle
      • Travel
      • Pet
      • Weddings
      • Umbrella
      • All Products
    • Prepare & Prevent
      • Insurance 101
      • Home Central
      • Travelers Garage
      • Managing Through COVID-19
    • Affinity Group Discount
    • Online Service
    • Pay Your Bill
      • Get a Quote
      • Find an Agent
      • File a Claim
      • Pay Your Bill
  • For Business
    • Overview
    • Products & Solutions
      • Overview
      • Boiler & Machinery
      • Commercial Auto & Trucking
      • Cyber
      • Environmental Liability
      • Excess Casualty & Umbrella
      • General Liability
      • Global Insurance
      • Inland Marine
      • Management & Professional Liability
      • Ocean Marine
      • Property
      • Business Owner's Policy
      • Surety Bonds
      • Workers Compensation
        • Find an Agent
        • File a Claim
        • Pay Your Bill
    • Industries
      • Overview
      • Agribusiness
      • Architects, Engineers & Surveyors
      • Auto & Truck Dealers
      • Business & Professional Services
      • Construction
      • Education
      • Energy & Renewable
      • Equipment Dealers
      • Financial Institutions
      • Food Services
      • Health & Related Services
      • Hospitality & Recreation
      • Manufacturing
      • Marine Industries
      • Museums & Fine Art
      • Non-Profit
      • Oil & Gas
      • Public Entities
      • Real Estate
      • Retail
      • Technology
      • Transportation
      • Wholesale & Distribution
        • Find an Agent
        • File a Claim
        • Pay Your Bill
    • Services
      • Overview
      • Risk Control
      • Claim
      • Premium Audit
      • Online Customer Tools
      • Risk Management Information Services
      • Travelers Client Advantage
        • Find an Agent
        • File a Claim
        • Pay Your Bill
    • Small Business
      • Overview
      • Automobile Insurance
      • Business Owner's Policy
      • Data Breach
      • Employment Practices Liability
      • Professional Insurance
      • Umbrella Insurance
      • Workers Compensation Inurance
        • Find an Agent
        • File a Claim
        • Pay Your Bill
    • Large Business
      • Overview
      • Casualty
      • Cyber
      • Management & Professional Liability
      • Property
        • Find an Agent
        • File a Claim
        • Pay Your Bill
    • Multinational Business
    • Prepare & Prevent
      • By Topic
      • By Industry
      • Navigating Your Business Through COVID-19
        • Find an Agent
        • File a Claim
        • Pay Your Bill
      • Find an Agent
      • File a Claim
      • Pay Your Bill
  • Claim Center
    • Claim Center
    • Should I File a Claim?
    • File a Claim
    • Roadside Assistance
    • Find a Service Provider
    • Check Your Claim Status
    • Manage Your Claim Experience
      • Understanding the Claim Process
      • Claim Guide Library
      • Workers Compensation Resources
    • Claim Capabilities
      • Get a Quote
      • Find an Agent
      • File a Claim
      • Pay Your Bill
  • Prepare & Prevent
    • For Individuals
    • Home Central
      • Buying & Selling
      • Home Maintenance
      • Home Renovation
      • Home Safety
      • Moving
      • Smart Home
    • Travelers Garage
      • Buying & Selling
      • Car Maintenance
      • Distracted Driving
      • Safe Driving
      • Teen Driving
      • Boating
    • Insurance 101
    • Weather
    • For Business
    • Industries
      • Construction
      • Manufacturing
      • Nonprofit
      • Small Business
      • Technology
    • Topics
      • Business Continuity
      • Cyber
      • Driver and Fleet Safety
      • Facilities Management
      • Internet of Things
      • Product and Services Liability
      • Supply Chain Management
      • Workplace Safety
    • Travelers Risk Index
      • Get a Quote
      • Find an Agent
      • File a Claim
      • Pay Your Bill
  • About Travelers
    • Overview
      • Awards & Recognition
      • Careers
      • Community
      • Diversity & Inclusion
      • Sustainability
      • History
      • Investors
      • Media Resources
      • News
      • Travelers Championship
      • Travelers Institute
      • Get a Quote
      • Find an Agent
      • File a Claim
      • Pay Your Bill
    • Get a Quote
    • Find an Agent
    • File a Claim
    • Pay Your Bill
Main Navigation
  • For Individuals
      • Insurance for Individuals
      • Products
        • Car
        • Home
        • Renters
        • Condo
        • Landlord
        • Boat & Yacht
        • Flood
        • Motorcycle
        • Travel
        • Pet
        • Weddings & Events
        • Umbrella
        • More
      • Prepare & Prevent
        • Insurance 101
        • Home Central
        • Travelers Garage
      • Affinity Group Discount
      • Online Service
      • Pay Your Bill
    • Get a home quote now

      It's easy to get a free quote for home insurance from Travelers in just a few minutes.

       

      Get a home quote now
  • For Business
      • Products & Solutions
        • Commercial Auto & Trucking
        • Cyber
        • General Liability
        • Management & Professional Liability
        • Property
        • Business Owner's Policy
        • Surety Bonds
        • Workers Compensation
        • More
      • Industries
        • Construction
        • Energy & Renewable
        • Financial Institutions
        • Healthcare
        • Manufacturing
        • Real Estate
        • Technology
        • Transportation
        • More
      • Prepare & Prevent
      • Services
        • Risk Control
        • Claim
        • Premium Audit
        • More
      • Pay Your Bill
      • Small Business
      • Large Business
      • Multinational Business
      • For Business Overview
    • Tips for Managing Risks Related to a Remote Workforce

      Tips for Managing Risks Related to a Remote Workforce

      With the current reality of more employees working from home through the pandemic, is your business ready for all the implications?

      Learn more
  • Claim Center
      • Claim Center
      • Should I File a Claim?
      • File a Claim
      • Roadside Assistance
      • Find a Service Provider
      • Check Your Claim Status
      • Manage Your Claim Experience
        • Understanding the Claim Process
        • Claim Guide Library
        • Workers Compensation Resources
      • Claim Capabilities
    • Send us your receipts, photos, invoices and more with just a push of a button.

      Securely share information with your Claim team.

      Send us your receipts, photos, invoices and more with just a push of a button.

      Upload a File
  • Prepare & Prevent
      • For Individuals
      • Home Central
        • Buying & Selling
        • Home Maintenance
        • Home Renovation
        • Home Safety
        • Moving
        • Smart Home
      • Travelers Garage
        • Buying & Selling
        • Car Maintenance
        • Distracted Driving
        • Safe Driving
        • Teen Driving
        • Boating
      • Insurance 101
      • Weather
      • For Business
      • Industries
        • Construction
        • Energy
        • Manufacturing
        • Nonprofit
        • Small Business
        • Technology
      • Topics
        • Business Continuity
        • Cyber
        • Driver and Fleet Safety
        • Facilities Management
        • Internet of Things
        • Product and Services Liability
        • Supply Chain Management
        • Workplace Safety
      • Travelers Risk Index
    • Managing Through COVID-19

      Managing Through COVID-19

      Resources to help you adapt to the realities of COVID-19.

      Learn more
  • Home
  • Prepare & Prevent
  • Home Central
  • Buying & Selling
  • Pros and Cons of Buying a Fixer-Upper House
Get a Quote*
Homeowners

INDIVIDUAL

COMBINE & SAVE

Or Call 1.888.695.4625 1.555.555.5555 1.777.777.7777 1.888.342.5977 1.844.754.0044 1.855.656.3103 1.844.403.1464 1.844.719.2120 to get a quote.* Retrieve a saved quote
Find an Agent Log in to MyTravelers®

Travelers is proud to work with the finest Independent Agents

Travelers customer? Log in to MyTravelers®

Pros and Cons of Buying a Fixer-Upper House

A man and woman looking at a color fan deck next to their house interior wall A man and woman looking at a color fan deck next to their house interior wall

Whether you’re looking to buy your first or your next home, you may wonder if buying a fixer-upper home could be a good investment. Buying a house that needs work may allow you to purchase in your preferred area at a lower cost than what you’d pay for a similar-sized, move-in-ready home.

Yet while fixer-uppers can help you save some money and secure a good location, they may not be a good fit for everyone. Let’s explore more about how to buy a fixer-upper by looking at the different types on the market and the pros and cons of purchasing one.

Different Types of Fixer-Upper Homes

The term fixer-upper covers a wide range of properties. Some homes may need a bit of light cosmetic work. Others may need a complete teardown to meet your needs. Here’s an overview of the types of fixer-uppers you may encounter as you consider buying a home that needs work.

1. Cosmetic updates. Many fixer-uppers are structurally sound and have functional systems (heating, plumbing, cooling, electrical, etc.), but the previous owners may not have updated the décor for decades. Replacing flooring, fixtures and countertops can be a big change without excessive investment. Even a fresh coat of paint, new door handles and trim can turn a rundown home into a bright, stylish space.

Tip: Although cosmetic updates aren’t as expensive as other upgrades, they can add up. Before buying a fixer-upper that needs a refresh, it’s a good idea to list all the changes you’d like to make. Then, estimate their cost to determine whether it’s a project you’re willing to take on. Consider what changes can wait for “phase two” of a project.

2. Structural updates. Structural work often includes additions to the house, removing walls, making substantial updates to systems like electrical and plumbing, and more.

Structural work may also encompass updates to heating or air conditioning systems. These systems may be outdated, inefficient or no longer working. And sometimes you’ll need to perform structural work to repair water or wind damage. If the foundation is cracked from past flooding, you’ll need to fix that to ensure the home is safe and stable.

Tip: Before buying a home that needs structural work, walk through it with a contractor or structural engineer. An untrained eye may not be able to assess what professionals can and can’t do—and what might be too expensive to take on.

3. Full remodels. A full-home remodel involves completely changing the structure and layout of your entire home. Remodels often include knocking down walls, changing the orientation of your space or installing a new kitchen. You may also have to update the electrical, heating and air conditioning systems. Additionally, a complete remodel can involve gutting the entire house and leaving nothing but the foundation and outside walls.

Tip: With a full remodel, you’ll likely need permits to complete the work you’re planning. Permits can take some time to secure and cost money, so start the process early and well ahead of your contractor’s timeline.

4. Teardowns. You may find that you love a particular lot or area, but the structure of the home is in bad shape or doesn’t work for your needs. In this case, tearing down the home can be an option. A teardown means completely removing the roof, walls, floors and foundation. There will be nothing left of the existing home.

Tip: Because teardowns tend to be disruptive, they often need approval from the town or city you live in. Therefore, be sure you have the approvals you need from your community before buying a property.

What to Consider with Houses That Need Work

There are advantages and drawbacks to buying a house that needs work. Here are some pros and cons to weigh as you decide on your next move.

Pros

  • Fixer-uppers can be less expensive to purchase than other homes of the same size in the same area.

  • You could get into a location that might otherwise be out of reach, and you can potentially make a profit at the time of resale.

  • When you’re fixing up a home that needs work, you have the opportunity to make it your own. Whether you make cosmetic changes or tear it down completely, the updated home is unmistakably yours.

Cons

  • Fixer-uppers come with many unknowns. For example, you won’t know what’s behind the walls until you start remodeling. You may find the electrical system needs a complete and unexpected overhaul.

  • Larger-scale projects can be expensive and often run over budget. If you encounter supply chain issues or labor shortages, costs can be less predictable.

  • Depending on the extent of the upgrades you’re taking on, fixing a home can take a long time. Living through major changes can be disruptive and stressful, and you may even need to pay for another place to live.

Does a Fixer-Upper House Make Sense for You?

The decision to buy a fixer-upper comes down to your appetite for taking on the project. Even cosmetic changes can be disruptive and expensive. You must be both financially and emotionally prepared for the amount of work ahead of you. Bring in experts—home inspectors, contractors, engineers, architects and designers—to help you decide whether the home’s potential is worth the cost.

Once you decide to move forward, it’s essential to protect your investment. Especially after all the work you’ve done to restore the house and bring your vision to life. Help shield yourself from the costs of future losses or damage to your new home with homeowners insurance from Travelers.

If you’re ready to begin: get a quote, contact an agent, or speak with a Travelers representative today.

Learn More About Home Insurance

More Prepare & Prevent

contractors working on a room in house

Hiring a Contractor Checklist and Tips

Use our hiring a contractor checklist tips as a guide to help you when selecting a contractor.

Woman researching how much homeowners insurance she needs

How Much Homeowners Insurance Do I Need? [Video]

Here's an overview of what's typically included in a homeowners policy, and other things to consider based on where you live and what you own.

Couple reviewing home closing costs in kitchen

How Much Does it Cost to Close on a House?

Buying a home is a big investment, but knowing what to expect can help you make sound financial decisions. Learn what typical closing fees may include.

Top Stories
A man and woman looking at homes for sale in a magazine

A Step by Step Guide to Buying a New House

Buying a home can be overwhelming, especially if you haven’t done it before. Our handy checklist will help you learn the steps to take when buying a house.

  • Learn more

Related Content

  • Questions to Ask Your Home Inspector [Video]
  • What to Look for in a Home Insurance Company
  • OpenHouse - Your Free Home History Report [Tool]

Related Products & Services

Home Insurance

Protect your home the way it protects you by choosing the property insurance coverage that meets your needs.


What Does Home Insurance Cover?

This can help protect your home in case of fire, hail, theft, and other perils.


See All Buying & Selling Content


Travelers logo

Travelers and The Travelers Umbrella are registered trademarks of The Travelers Indemnity Company in the U.S. and other countries.
© 2023 The Travelers Indemnity Company. All rights reserved.

  • Travelers on Facebook
  • Travelers on YouTube
  • Travelers on Twitter
  • Travelers on LinkedIn
  • Travelers on Instagram

Products & Services

  • For Individuals
  • For Businesses
  • Claim Services
  • Prepare & Prevent

Our Company

  • About Travelers
  • Careers
  • Investors
  • Sustainability
  • Travelers Institute

Connect

  • Customer Support
  • MyTravelers®
  • For Agents
  • Find an Agent

Legal & Compliance

  • Terms of Service
  • Privacy & Security
  • Cookie Settings
  • Accessibility
  • Producer Compensation Disclosure

*Quotes may not be available in all states or for all products. In CA, quotes for all products must be obtained through a local independent agent.