The Impact Of Home Renovations On Your Homeowners Insurance: What To Discuss With Your Insurance Agent

If you're about to begin a home renovation project, you're undoubtedly looking forward to enjoying your upgraded home once the improvements are finished. However, before embarking on any home renovation project, it's important to discuss your plans with your homeowners insurance agent. Begin by assessing the scope of your project, including the extent of structural changes, upgrades to your home's systems, and any additional living spaces that you plan to create. Providing your agent with a detailed overview of your renovation plans will help them better understand the potential impact on your homeowners insurance policy. Here's how your agent can help you stay protected:

Ensuring Adequate Coverage During Construction

During the construction phase of your renovation, your home may be exposed to a variety of risks that aren't typically covered under a standard homeowners insurance policy. These can include theft of construction materials, damage caused by construction activities, and liability for injuries that may occur on your property during the renovation process.

Discuss these risks with your insurance agent and ask about any additional coverage options that may be available to protect your property and finances during construction. This could include builder's risk insurance or an endorsement to your existing policy that extends coverage for the duration of the project.

Updating Your Policy to Reflect Home Improvements

Once your renovation project is complete, it's vital to update your homeowners insurance policy to reflect the changes made to your home. Significant home improvements can affect the replacement cost of your property, potentially leaving you without enough coverage in the event of a disaster.

Consult with your insurance agent to determine if your existing coverage limits are still sufficient, or if you need to increase them to adequately protect your newly renovated home. Additionally, ask your agent about any potential premium changes that may result from your renovation, as well as any new discounts that you might be eligible for, such as those for installing a new roof or upgrading your home's security system. Additionally, if you're adding a home office with the goal of starting a home business or switching to remote work, your current coverage might not be adequate. 

Reviewing Liability Coverage and Endorsements

Home renovations can also impact the liability portion of your homeowners insurance policy. For example, if you've added a pool or built a new deck, you may need to increase your liability coverage to protect yourself in case someone is injured on your property. Discuss any potential liability concerns with your homeowners insurance agent and ensure that your policy provides the necessary protection for your newly improved home.