How Renovations Impact Your Home Insurance

Renovating your home can be an exciting endeavor, but it’s essential to understand how these changes can impact your home insurance. Whether you upgrade your kitchen, add a pool or build extra rooms, renovations can affect your coverage in several ways.

Home Renovations and How They Can Impact Insurance

Home renovations can impact your coverage in the following ways:

• Increased property value—Major renovations, such as adding a new room or upgrading the kitchen, can significantly increase the value of your home. This means that your current insurance policy might not cover the full cost of rebuilding or repairing your home in case of damage. You may need to increase your coverage limits to reflect the new value of your home.

• Added risks—Some renovations can introduce new risks that your insurance policy needs to cover. For example, installing a swimming pool can increase your liability risk, as pools are considered “attractive nuisances.” This might lead to higher premiums or the need for additional liability coverage. Similarly, adding a home office for a business can change the nature of your coverage needs.

• Safety improvements—On the flip side, certain renovations can reduce risks and potentially lower your premiums. Installing safety features like storm-proof windows, updated wiring or a stronger roof can make your home safer and less prone to damage. Insurance companies often offer discounts for these types of improvements.

• Communication with your insurer—It’s crucial to inform your insurance company about any renovations you undertake. Keeping your insurance company informed allows your policy to reflect the current state of your home accurately. Failure to update your insurer can result in being underinsured, meaning your policy wouldn’t pay enough to rebuild or replace everything in case of a disaster.

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For homeowners insurance near you, contact Dan Pittman Insurance Agency Inc.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.