Home renovations can improve comfort, functionality, and property value, but they can also affect your homeowner’s insurance. Whether you are planning a major upgrade or a small improvement, it is important to understand how changes to your home could impact your coverage and premiums.
Here are five common home renovations that may alter your coverage and why it is worth reviewing your policy before and after you remodel.
1. Kitchen or Bathroom Remodels
Upgrading kitchens or bathrooms often increases your home’s replacement cost. New cabinetry, countertops, and upgraded finishes may require higher coverage limits to ensure your home is fully protected after a loss.
Insurance tip: Notify your agent if you are making significant upgrades so your dwelling coverage can be adjusted accordingly.
2. Home Additions or Finished Basements
Adding square footage such as a new bedroom, sunroom, or finished basement increases your home’s value and rebuilding cost. Finished basements may also raise liability risks when used as living or entertainment space.
Insurance tip: More square footage typically means more coverage is needed.
3. Installing a Pool or Hot Tub
Pools and hot tubs increase liability exposure due to the risk of injuries or accidents. These features may require higher liability limits or an umbrella policy.
Insurance tip: Safety features like fencing or locked covers can help reduce risk.
4. Roof or Structural Upgrades
Replacing a roof or upgrading electrical, plumbing, or HVAC systems can reduce the likelihood of claims. In some cases, these improvements may even lower insurance premiums.
Insurance tip: Keep paid invoices and documentation of upgrades, as they may qualify for insurance discounts.
5. Home Offices or Specialty Features
Adding a home office, workshop, or specialty equipment can change how your insurer evaluates your home, especially if business property is involved.
Insurance tip: Homeowners insurance has limits on business property, so additional coverage may be needed.
Planning a Renovation? Review Your Coverage First
Before starting any home improvement project, reviewing your homeowner’s insurance helps ensure your coverage keeps pace with your investment.
The Personal Lines team at McConkey is here to help you understand how renovations impact your coverage and make sure you are properly protected.
