Do I Need More Homeowners Coverage After Renovating?
Insurance Neighbor • October 16, 2019
Remodeling Projects That Increase Your Need For Homeowners Insurance Coverage
- Remodeling existing living spaces: Many kinds of improvements can increase the value of your home, such as installing example hardwood floors or updating the kitchen. If your remodeling adds to your home’s market value, you will need to adjust your homeowners coverage accordingly.
- Expanding living space: An addition will add value and square footage to your home. It is wise to speak to your agent about increasing your homeowners coverage before the project begins, in case of a fire or other losses before construction is complete. If the addition is for a home office, you may need to adjust both your homeowners insurance and business insurance.
- Converting unlivable spaces to livable spaces: It is not uncommon to convert a garage, attic, or shed to living space. If you do this type of renovation, check your policy to find out if the area you are converting is already covered under your homeowners insurance. If not, you will need to increase your coverage. In the case of a converted garage, you may also need to adjust your auto insurance, as keeping your vehicle garaged may lower your car insurance rates.
- Installing a pool: When you add a swimming pool to your home, you are adding to your liability as a homeowner. An “attractive nuisance,” such as a pool or trampoline, will increase your risk and raise your homeowners insurance rates.
Renovations That May Lower Your Homeowners Insurance Rates
- Installing safety features—such as a security system, smoke alarms, gas detectors, or shatter-proof windows—can help lower your homeowners insurance rates.
- So can replacing an outdated HVAC system, as it may eliminate electrical hazards.
- Updating your electrical system or plumbing can reduce the risk of fire or water damage and lower your costs.
- Replacing your roof with durable materials can lower your risk of hail, snow, wind, and water damage, which in turn can help reduce your rates.
- Installing a fence around your backyard or pool may also qualify you for a safety discount.
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