How House Improvements Impact Your Home Insurance

Home renovations can breathe new life into your living space, enhance functionality and boost your property’s value. Whether you’re adding a sunroom, remodeling the kitchen or expanding your home office, these changes can significantly impact your homeowners insurance. Understanding the implications of home improvements can help ensure you’re adequately protected.

Do I Need to Update My Home Insurance When Making Renovations?

Home renovations can significantly impact your homeowners insurance. The following are some coverage updates you might need to make:

• Increased dwelling coverage—When you renovate your home, the value of your property may increase. As a result, you’ll likely need to adjust your dwelling coverage—the part of your policy that covers the structure of your home. Consult with your insurance provider to determine the new replacement cost of your home. Make sure your coverage reflects this updated value.
• Additional coverage for renovations—If you’re adding an extension, converting your basement into a living space or making other significant changes, you’ll need to inform your insurer. Some renovations may not be automatically covered under your existing policy. Discuss the specifics with your agent to help ensure proper coverage during and after the renovation process.
• Liability considerations—Renovations can introduce new risks. For instance, if you’re doing major construction work, there’s a higher chance of accidents or injuries on your property. Review your liability coverage to help ensure it adequately protects you. If you’re hiring contractors, verify that they also have liability insurance.
• Temporary relocation coverage—During extensive renovations, you might need to move out of your home temporarily. Check if your policy includes additional living expenses coverage.
• Coverage for new structures—If your renovation involves building a detached garage, a shed or any other structure on your property, you may need additional coverage. Discuss coverage for these new structures with your insurer.
• Home security and safety upgrades—Some renovations improve safety and security. For example, installing a security system, fire alarms or impact-resistant roofing can reduce risks. Inform your insurer about these upgrades—they may qualify you for discounts on your premiums.
• Review personal property coverage. Renovations can expose your belongings to damage or theft. Ensure your personal property coverage is sufficient. Take an inventory of your possessions and update your coverage accordingly.

Homeowners Insurance in Katy, TX

Contact TS Insurance to discuss your homeowners insurance. We can make sure you have the right coverage for your renovation plans.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.Top of Form