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How Renovations Can Affect Your Home Insurance: A Guide

Aerial photo of a wooden table with a computer, calculator, some notebooks and hands working on it. On the right center side of the photo there’s a writing saying Home Insurance with a blue house on top.

Are you curious if renovations might affect your home insurance? When it comes to renovations to your home, you're not only changing the things you like about your house. You're also potentially changing the value, and policies for your home insurance may be different.


If you're about to make changes to your home, read this guide first. In this article, we are talking about how renovations can affect your home insurance.

 

Renovations That Increase Your Insurance


For the most part, but not in all cases, any renovation where you are adding space can increase your insurance rate. Let's take a look at some examples where renovating can increase your rate.


Building a Pool


There's nothing better than to enjoy a hot summer day at the pool. Even better, if all you have to do is walk outside from your porch door to enjoy it. Although a pool seems like a beautiful addition to your home, it is considered an "attractive nuisance."


A pool increases your liability risk and will most likely hike up your insurance rate.


Expansion of Space


If your family is growing or you want more space, you'll probably think about finishing your basement, adding a room or a deck to your home. Although this increases the value of your home, it can increase your home insurance.


This is because, with any added space, you'll need to get a reevaluation for your home. Increased areas and value mean you'll need more coverage to include your home's expansions.

 


Major Kitchen Upgrades


Quality upgrades to your kitchen such as granite countertops, premium flooring and top-of-the-line appliances come at an expense. More expensive upgrades usually mean you'll need more insurance coverage to cover those upgraded goods.


With that said, consider increasing the coverage to match your kitchen upgrades.


Business Spaces


Working from home is becoming more common as we find our way through this pandemic. Adding an office space or even a workshop to your home can sound like a great Idea.


Just be aware that it can increase your insurance rate depending on what you are doing that pertains to your work or business. Homeowners' insurance may not cover liability related to your employment. Consider talking with your insurance agent to see what options you have.


Renovations That Lower Your Insurance


In some cases, Renovations may lower your insurance rate. If you add something that makes your house safer or more efficient, you may see a decrease. Let's take a look at these situations.


Weather Proofing Your Home


If you live in a high-risk weather area, it's an excellent idea to weatherproof your home. Replacing your roof, adding storm shutters, and reinforcing garage doors are all great ideas. Doing these upgrades can also give you some pretty massive discounts on your home insurance.

 


Upgrading Home Systems


Anytime you minimize risk, it means you may have a chance at scoring in on home insurance discounts. Gas leak detection systems, pipe freeze sensors, or security systems are great options to protect your home and wallet.


Let Your Home Insurance Company Help You


Making any renovations to your home comes at an out-of-pocket cost. Knowing whether your renovation will increase, or decrease can be a significant advantage in deciding on your renovations.


If you have questions about home insurance coverage with your renovations, Maynard Insurance can help you with any of your insurance questions and needs.

 

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