Renovations and Home Insurance: Adjusting Your Coverage During Remodeling

Home renovations can be an exciting yet challenging endeavor. Whether you’re adding a new room, updating your kitchen or making structural changes, it’s crucial to consider how these improvements impact your home insurance.

Understanding the Impact of Renovations

Renovations can significantly increase the value of your home. While this is great for your property’s market value, it also means that your current insurance policy might not provide adequate coverage. For instance, adding a new room or upgrading your kitchen with high-end appliances increases the replacement cost of your home. If your insurance coverage isn’t updated to reflect these changes, you might find yourself underinsured in the event of a loss.

Notifying Your Home Insurance Provider

Before starting any major renovation, notify your insurance provider. This communication is essential because your insurer needs to reassess the risk associated with your property. Some renovations, like installing a new roof or updating electrical systems, might reduce your premiums because they lower the risk of damage. Conversely, adding a swimming pool or a home office might increase your premiums due to the added liability and replacement costs.

Temporary Adjustments During Construction

During the renovation period, your home might be more susceptible to damage. Consider discussing temporary coverage adjustments with your insurer. This might include increasing your liability coverage if you have contractors working on your property or adding a builders risk policy to cover damages that occur during construction.

Post-renovation Appraisal

Once renovations are complete, request a post-renovation appraisal. This will provide an updated value of your home, which is crucial for adjusting your insurance coverage accurately. Ensure that your policy reflects the new value and any additional features to avoid being underinsured.

Learn More

Contact Rich Toreson Insurance Agency Inc to review your home insurance needs.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.