Renovating your home can boost its value. However, some upgrades might raise your insurance costs. Others, though, could earn you discounts. Many homeowners don’t know certain renovations can even hurt their coverage. Knowing how renovations affect your insurance keeps you prepared.
There is a projection that homeowners will spend around $608 billion on remodeling projects in 2025. This shows home upgrades remain popular. After any renovation, review and update your homeowner’s insurance. This article explains how improvements change your insurance rates. It also covers why keeping your policy current matters.
Renovations That May Raise Your Insurance Costs
Certain home upgrades can increase your home’s value. But also add new risks. These risks might lead to higher insurance rates.
Here are some upgrades that may help you save money:
Liability Risks from Home Additions
Pools and hot tubs raise the risk of accidents. Trampolines and playgrounds can lead to falls. Fire pits may cause burns. Large decks and patios add more places where people can get hurt. These features often lead to higher insurance costs.
Changes in Home Use
Consider landlord insurance if you rent part of your home or run a business there. Proper coverage protects equipment and covers potential liabilities. Building guesthouses or separate structures may also require extra coverage or policy endorsements.
Renovations That May Lower Your Insurance Costs
Some home upgrades can lower your homeowner’s insurance costs. Insurers give discounts for making your home safer and stronger.
Disaster-Resistant Upgrades
Storm shutters and stronger windows guard against bad weather. Using fire-resistant siding reduces damage from fires.
How to Get Discounts
Insurers offer discounts for these improvements. After renovating, tell your insurer. They can update your coverage and apply discounts you earned.
Why Updating Your Policy Matters
Always update your insurance after renovations. Your coverage should match your home’s current value and risks. If you don’t update, you could face problems when filing claims.
Follow these steps after renovating:
- Check your coverage matches your home’s new replacement cost.
- Tell your insurance company quickly about major upgrades.
- Ask if you need extra coverage for luxury items, rentals, or home businesses.
- Get a new home appraisal to set the right coverage.
Temporary Coverage During Renovations
Renovating your home can increase risks like fire, theft, and damage. Your regular homeowner’s insurance may not fully cover construction work. If your home will be empty during renovations, consider getting vacant home insurance.
Builder’s risk insurance is another good choice. It covers building materials and parts of your home still under construction. Talk with your insurance provider, like SFM Insurance, before starting major projects. They can help you choose the right temporary coverage. This keeps your home and investment protected.
Let SFM Insurance Help You Stay Protected
Home renovations improve your home but also affect your homeowner’s insurance. Make sure your policy covers these changes.
At SFM Insurance, we make this simple. If you add rooms, strengthen your home, or install safety features, we can help. We’ll provide clear advice and help you choose the right insurance coverage.
Get a FREE quote now and we’ll keep your home protected every step of the way.
