How Will Renovating My House Affect My Home Insurance?

It is essential to understand the connection between home renovations and insurance and how much renovations impact your home insurance. Experts estimate that renovations increase the asset value of a home by 25 percent. However, most holders of home insurance do not obtain new coverage during or after renovation.

Adding new features to our home or remodeling existing ones can be an exciting endeavor. It could be as simple as the impression of new wallpaper, adding a ceiling detail, or fitting a designer lighting and jaw-dropping chandelier. You may decide to add a little aesthetics with a free-standing bathtub, a frameless shower, fire pit, or a showstopping front door. No matter what form the renovation takes, your insurer should be informed.

This is because some renovations push up your home’s value, while upgrades that increase home security may qualify for a discount. Without informing your insurer, you may have rendered your insurance coverage inadequate or may be losing out on a discount. It is valuable to understand home renovations and insurance.

Here are some common renovations that impact your home insurance.

  1. Remodeling Your Kitchen

Remodeling your kitchen is a very popular home renovation. Depending on the upgrade, remodeling your kitchen can have an impact on your home insurance. For instance, if you replace laminated wooden countertops with granite countertops, that may raise your kitchen’s value, which the existing policy would not cover. Also, fitting a fire alarm may increase your asset value but could qualify you for a discount. This is not automatic, and you will have to discuss the changes with your insurer.

  1. Repairing/Replacing Your Roof

Replacing your roof with stronger roofing materials and fortifying with hail, leak, or wind-resistant features may qualify you for a discount on premiums. However, redoing your roof may also increase the value of your home, thus requiring more coverage. See your agent for clarity.

  1. Constructing a Pool

The risk of injury and death increases in your home when you build a pool, which has a high impact on home insurance. Additionally, a pool with a diving board or slide further increases risk, while one with a fence and lock may be considered less dangerous. Adding a pool increases your liability protection by up to 500 percent of the standard insurance policy. Discuss the possible impact of adding a pool with your insurance provider to help you make the right renovation choices.

  1. Maximizing Your Home Space

You may wish to expand space in your home by finishing a basement or adding a deck. Expanding home space also means an increased value of your home, which requires an adjustment in your policy. In a location prone to flooding, the risk of having a basement flooded increases, thus becoming a crucial contemplation in home renovations and insurance. You need to contact your insurer to reevaluate your home for comprehensive coverage.

  1. Integrating a Home Business Office

Launching a home business can be a wonderful experience. There are some insurance considerations that you have to keep in mind during this process. Suppose you deal with large amounts of supplies, use of specialized machinery, or create heavy foot traffic. In that case, you may need to see your insurer to reevaluate your home value and ensure you have appropriate coverage. This may require an adjustment to your current policy. You may also need to purchase a business policy.

If you disregard your insurer during renovations, you may not get the full value of your home when the time comes for a claim. This is why it is important to consider home insurance during a renovation. For assistance with all your home insurance needs, contact the experts at Pierce Insurance Group today. We are ready to help you with all your coverage needs and questions.