Whether you’re preparing to sell your home or simply investing in it for the future, home improvements can make a big difference. From updating your roof to adding smart-home technology, the right upgrades can improve your home’s appearance, functionality, and overall value.
But there’s another important piece to consider: your homeowners insurance.
Some improvements can increase the cost to rebuild or replace your home, change your home’s risk profile, or add valuable new items that may need additional coverage. Before or after making a major improvement, it’s a good idea to check in with your independent insurance agent to make sure your policy still fits your home.
Here are eight smart ways to increase your home’s value, along with a few insurance considerations to keep in mind.
1. Update Your Roof
Your roof is one of the most important parts of your home, protecting everything underneath it from the elements. Replacing an aging or damaged roof can improve your home’s appearance, value, and protection.
When replacing your roof, consider materials designed for durability and impact resistance. Depending on your policy and the improvements you make, a new roof may also affect your homeowners insurance premium or eligibility.
Insurance tip: Let us know when you replace your roof. They may need documentation about the age, material, or condition of the new roof.
2. Remodel the Kitchen
The kitchen is often the heart of the home, so it’s no surprise that kitchen updates can be appealing to potential buyers. New counter tops, flooring, appliances, cabinets, back splashes, or fresh paint can give the space a whole new look.
However, a major kitchen remodel can also increase the overall cost of your home and the amount it would take to rebuild it.
Insurance tip: If you’ve significantly upgraded your kitchen, check with us to make sure your dwelling coverage reflects the improvements.
3. Update the Bathroom
You don’t necessarily need a complete bathroom renovation to make an impact. New lighting, flooring, fixtures, paint, storage, or counter tops can give the room a fresh look.
For larger projects, such as adding a bathroom or expanding an existing one, your home’s replacement cost could increase.
Insurance tip: Adding square footage or making major structural changes is a good reason to let us help review your homeowners policy.
4. Refinish Hardwood Floors
Sometimes a home improvement doesn’t require construction at all. Refinishing scratched or worn hardwood floors can make a room feel newer without the expense of completely replacing the flooring.
It’s a relatively simple improvement that can make a noticeable difference in your home’s overall appearance and appeal.
Insurance tip: Keep records and receipts for major home improvements. They can be helpful when reviewing your home’s value and coverage with us.
5. Create More Usable Space
Adding an extra bedroom, bathroom, finished basement, or other living space can potentially increase your home’s value. Even without an addition, creating a more functional layout or open floor plan can make your existing space feel larger.
Keep in mind that finished basements and additions can introduce new insurance considerations, particularly if you add valuable contents, plumbing, electrical work, or specialized features.
Insurance tip: Tell us about finished basements, additions, and other significant changes to your home.
6. Make Your Home More Energy Efficient
Energy-efficient upgrades can make your home more comfortable while potentially reducing energy costs. Consider improvements such as LED lighting, energy-efficient appliances, updated windows, improved insulation, or other energy-saving features.
Some homeowners may also consider larger investments, such as solar panels.
Insurance tip: Certain improvements, including solar panels or other specialized equipment, may require a coverage review. We can help you determine whether your existing policy provides the protection you need.
7. Upgrade Appliances and Fixtures
You don’t always need a major renovation to give your home a fresh, updated feel. Replacing an outdated refrigerator, stove, dishwasher, light fixture, faucets, cabinet hardware, or doorknobs can make a noticeable difference.
As you upgrade appliances and other items, keep in mind that higher-value belongings may affect the amount of personal property coverage you need.
Insurance tip: Keep receipts for expensive appliances and other major purchases. They can make documenting your belongings much easier if you ever need to file a claim.
8. Add Smart-Home Technology
Smart-home technology can add convenience, security, and efficiency to your home. Popular options include smart thermostats, security cameras, water leak detectors, and smart smoke and carbon monoxide detectors.
These devices can also help homeowners identify potential problems sooner and, in some cases, reduce the likelihood or severity of certain losses.
Insurance tip: Ask us whether your insurance carrier offers any discounts or special considerations for qualifying protective devices.
Don’t Forget About Your Insurance
Home improvements can be exciting, but updating your insurance coverage may not be the first thing that comes to mind when you start a renovation project.
Whether you’re replacing your roof, finishing your basement, remodeling your kitchen, or adding smart-home technology, let us know about significant changes to your home.
Your homeowners policy should reflect the home you have today, not the home you had years ago. A quick coverage review can help make sure your investment is properly protected.
Thinking about making improvements to your home? Contact Midwest Certified Insurance Agency and let us help you make sure your insurance coverage keeps up with your home.
