Should I Update My Insurance After Renovating My Home?

Home renovations are an exciting way to improve your living space, increase your home’s value, and make your property better suited to your family’s needs. Whether you’re remodeling a kitchen, finishing a basement, adding a deck, or building a home addition, it’s important to remember that renovations can also affect your homeowners insurance.

Many homeowners don’t realize that after a renovation, their existing insurance policy may no longer accurately reflect the value or features of their home.

If you’re planning a renovation—or you’ve recently completed one—here’s why it’s a good idea to review your insurance coverage.

Why Home Renovations Matter to Your Insurance

Your homeowners insurance is designed to help protect your home based on the cost to repair or rebuild it after a covered loss.

When you make significant improvements, the cost to rebuild your home may increase. If your policy isn’t updated, you could be left with less coverage than you need.

Renovations may also introduce new features, equipment, or liability exposures that should be discussed with your insurance agent.

Renovations That May Affect Your Coverage

Not every project requires changes to your policy, but larger improvements often do.

Examples include:

Kitchen Remodels

New custom cabinets, high-end appliances, countertops, and flooring can significantly increase your home’s replacement cost.

Bathroom Renovations

Luxury fixtures, custom tile work, and upgraded plumbing may increase the value of your home and the cost to repair or replace it.

Home Additions

Adding a bedroom, family room, or garage increases your home’s size and may require higher dwelling coverage limits.

Finished Basements

Turning unfinished space into a living area often adds value and may require updates to your coverage.

Roof Replacement

Installing a new roof may improve your home’s protection and, in some cases, may qualify you for certain insurance discounts, depending on the insurer.

Detached Structures

Adding a detached garage, workshop, shed, pergola, or guest house may affect the coverage needed for structures that are separate from your home.

Swimming Pools and Trampolines

These features can increase your personal liability exposure. You may want to review your liability limits and discuss whether a personal umbrella policy is appropriate.

Solar Panels

Whether solar panels are installed on your roof or as a ground-mounted system, they may affect your property’s value and should be reviewed with your insurance agent.

Don’t Forget About Personal Property

Home renovations often include purchasing new furniture, electronics, appliances, or décor.

If you’ve recently invested in expensive items, it’s worth reviewing your personal property coverage.

Certain valuables—such as jewelry, fine art, collectibles, firearms, musical instruments, or high-end electronics—may have special coverage limits. Depending on the item, you may want to discuss scheduled personal property coverage with your agent.

What About Contractors?

Before work begins, make sure the contractor you hire is properly licensed (where required) and carries appropriate insurance.

Ask for proof of:

• General liability insurance

• Workers’ compensation insurance, if applicable

Hiring an insured contractor can help reduce your risk if something goes wrong during the project.

Notify Your Insurance Agent Before Major Projects

If you’re planning a significant renovation, it’s a good idea to contact your insurance agent before construction begins.

We can help determine whether your current coverage is adequate during the renovation and whether updates should be made once the work is complete.

Early communication can help prevent surprises if a covered loss occurs during or after construction.

Other Coverages to Review

Depending on the scope of your renovation, it may be a good time to review:

• Dwelling coverage

• Other structures coverage

• Personal property coverage

• Personal liability limits

• Medical payments coverage

• Water backup coverage, if available

• Equipment breakdown coverage

• Personal umbrella insurance

Every home is different, so the right coverage depends on your property and your individual needs.

When Should You Call Your Insurance Agent?

Contact your agent if you are:

• Remodeling a kitchen or bathroom

• Finishing a basement or attic

• Building an addition

• Replacing your roof

• Installing solar panels

• Adding a detached structure

• Installing a pool or hot tub

• Purchasing expensive appliances or furnishings

• Making any improvement that significantly increases your home’s value or replacement cost

A quick conversation before or after your renovation can help ensure your policy reflects your home’s current condition.

Protect Your Investment

Home improvements are an investment in your property—and your insurance should keep pace with those improvements.

Updating your policy after a renovation helps ensure your home is properly protected and gives you greater peace of mind if the unexpected happens.

If you’re planning a renovation or recently completed one, contact our agency for a complimentary insurance review. We’ll help you determine whether your homeowners policy should be updated so you can enjoy your newly improved home with confidence.