Renovations and Home Insurance: How Home Improvements Affect Your Coverage
Renovating your home is exciting—but it also affects more than just how your space looks. From upgrading your kitchen to adding a swimming pool, home improvements can raise the value of your property, increase risk, or even qualify you for insurance discounts. Knowing how each renovation can affect your coverage is key to staying protected—and potentially saving money.
Why Renovations Change Your Insurance Needs
Your home insurance is based on rebuilding cost, risk exposure, and liability potential. When you make changes to your home—especially large structural or functional upgrades—your existing policy might no longer offer sufficient coverage. If disaster strikes after a remodel, you want your updated home fully covered.
Improvements That May Require Raising Your Coverage
1. Structural Additions
Building an extra room, expanding your living area, or finishing your basement? These increase your home’s square footage and replacement cost. Not informing your insurer could lead to underinsurance—you won’t be paid enough if a total rebuild is needed.
2. Kitchen or Bathroom Remodels
These are high-value areas. New countertops, custom cabinets, and premium fixtures raise the cost to repair or replace your home, and thus should be reflected in your policy.
3. New Roof or Plumbing
While upgrades like these improve safety and reduce claims risk, they also boost property value. Updating your provider can ensure your coverage matches the improved structure—and might even qualify you for discounts.
Upgrades That Can Trigger Liability Concerns
1. Swimming Pools
Pools are fun but considered an "attractive nuisance." They increase the risk of injury, especially for children. This typically requires higher liability limits and may even lead to premium increases.
2. Trampolines or Treehouses
These might seem harmless, but insurers often view them as high-risk features. You might be required to add specific safety features—or they could even be excluded from your policy.
Home Improvements That Can Lower Your Premium
1. Security Systems
Modern alarm systems, video monitoring, and smart locks reduce the risk of burglary or damage—and insurers love this. You may qualify for policy discounts.
2. Fire-Resistant Materials
Installing fireproof roofing, sprinkler systems, or smoke detectors can also make you eligible for lower premiums in some states.
What You Should Do Before and After Renovating
Contact your insurance provider before major renovations begin to ensure you have the right temporary coverage during construction.
Reassess your policy once the work is done to update your coverage limits based on the home’s new value.
Keep all receipts and documents related to your renovation for future reference or claims.
Check liability limits if you're adding high-risk features.
Every renovation comes with changes—some visible, others behind the scenes. Failing to update your policy after improving your home could leave you underinsured or vulnerable to liability. The good news? Many upgrades also open the door to valuable savings and protection enhancements.
FAQs: Renovations and Home Insurance
Q: Do I need to tell my insurance company about minor updates?
Yes, even small changes can affect your home’s rebuild cost or risk level. It's always safer to inform your insurer.
Q: Can I be denied coverage for certain renovations?
Possibly. High-risk features like trampolines or certain construction materials may be excluded or require additional safety measures.
Q: Will my premium always go up after a remodel?
Not necessarily. Some updates—like new roofing or safety improvements—can lead to lower premiums.
Q: When is the best time to contact my insurer during a remodel?
Ideally, before work begins. This ensures you have the right coverage during the renovation process and avoid any gaps.
Get Help Choosing the Right Coverage for Your Upgraded Home
Planning a renovation? Get a free quote today to make sure your home insurance grows with your property upgrades. Stay protected, no matter how much your home evolves.
