Thinking about sprucing up your space with a fresh kitchen, a new bathroom, or maybe even a cozy backyard deck? Watching home renovation shows makes us all excited for a new project- and a way to personalize and improve our homes. Before you break out the hammer and nails on a big project, there’s one important thing you’ll want to consider: your home insurance. 

We’re here to help you navigate how home insurance fits into your renovation plans. While most projects add value to your home once finished, it’s important that your investment is properly protected during a renovation as well. 

Why Does Home Insurance Matter During Renovations?

When you’re planning a renovation, it’s easy to focus on picking out paint colors or choosing the perfect new appliances. But did you know that major renovations can impact your home insurance coverage? Whether you’re adding square footage or upgrading your home’s features, it’s crucial to keep your insurance policy up to date to make sure your new and improved home is fully protected.

Here’s why you’ll want to review your home insurance during a renovation:

  1. Increased Home Value
    Renovations often boost the value of your home. If your insurance policy doesn’t reflect those improvements, you could be underinsured. For example, if you upgrade your kitchen with high-end appliances and countertops but don’t update your policy, your current coverage may not be enough to replace those new items if something happens.
  2. Construction Risks
    Renovation projects come with their own set of risks—think burst pipes, fires from faulty wiring, or even theft of materials while construction is underway. Some home insurance policies might not automatically cover these risks, so it’s important to make sure you’re protected while the work is happening.
  3. Liability Coverage
    If you’re hiring contractors or inviting friends over to help with your project, you’ll want to double-check your liability coverage. Accidents can happen—whether it’s a contractor getting injured or a neighbor’s property being damaged during the renovation.

What Should You Do Before Starting Your Renovation?

Before you begin your home renovation, here are a few simple steps to make sure your home insurance stays in sync with your plans:

  1. Talk to Your Insurance Agent
    Give your insurance agent a call before you start any major renovations. They’ll help you figure out whether you need to update your coverage or add additional protection during the construction phase.
  2. Keep Detailed Records
    Document all your renovation work. Keep receipts, take photos, and save any permits related to your project. These records can be incredibly helpful if you ever need to file a claim.
  3. Make Sure Your Contractor is Insured
    If you’re working with a contractor, confirm that they have proper insurance, including liability and workers’ compensation coverage. This ensures that you’re not on the hook if something goes wrong on the job site.

Types of Renovations That Can Impact Your Insurance

Not all renovations will affect your insurance, but here are some common projects that usually do:

  • Kitchen or Bathroom Remodels: Upgrading fixtures, countertops, or appliances can increase your home’s value, which means you’ll want to adjust your coverage accordingly.
  • Adding a Room or Finishing a Basement: Expanding your home increases its square footage, so you’ll need to increase your coverage to reflect the added space.
  • Building a Deck or Installing a Pool: These outdoor upgrades can also raise the value of your home and may require additional liability coverage, especially if you’re adding something like a swimming pool.
  • Upgrading Your Roof or Windows: Some improvements, like a new roof or energy-efficient windows, can actually lower your insurance premiums because they reduce the risk of weather-related damage.

Don’t Forget About Your Personal Belongings

If you’re making significant changes to the interior of your home, like a kitchen renovation or adding custom built-ins, don’t forget to update the value of your personal belongings. High-end finishes and appliances may require you to increase your personal property coverage to make sure everything is fully protected.

Can Renovations Save You Money on Home Insurance?

Good news—certain renovations can help lower your home insurance premiums! Here are a few ways you might be able to save:

  • Improved Safety Features: Installing a home security system, smoke detectors, or fire sprinklers can often qualify you for discounts on your home insurance.
  • Upgrading Plumbing or Electrical: If you’re updating old plumbing or wiring, you may reduce the risk of accidents like water damage or electrical fires, which could lead to lower premiums.
  • New Roof: A new roof, especially one made from impact-resistant materials, can reduce your chances of wind or hail damage, potentially lowering your insurance costs.

We’re Here to Help!

Planning a renovation or curious about how your current policy covers your home improvements? Reach out to us today—we’d love to chat and make sure you’re fully protected!