Home improvement projects are a great way to increase your home’s value, improve functionality, and create a space that better fits your lifestyle. Whether you’re building a deck, remodeling your kitchen, adding a pool, or finishing your basement, these upgrades can also affect your homeowners insurance.
Many homeowners don’t realize that renovations and additions may change the amount of coverage they need. Taking a few minutes to review your policy after completing a project can help ensure your home is properly protected.
Why Home Improvements Matter
Your homeowners insurance is based on several factors, including the size, features, and replacement cost of your home.
When you make improvements, you may increase the cost to repair or rebuild your home after a covered loss. If your policy hasn’t been updated to reflect those changes, you could find yourself underinsured.
Reviewing your homeowners insurance after a renovation is a simple step that can help protect your investment.
Home Improvements That May Affect Your Insurance
Not every project will have the same impact, but some upgrades are more likely to change your insurance needs than others.
Room Additions
Adding a bedroom, bathroom, or expanding your home’s square footage increases its replacement cost. Your policy may need to be adjusted to reflect the added value.
Kitchen and Bathroom Remodels
Updated cabinetry, countertops, flooring, and high-end appliances can increase the cost to repair or replace your home after a covered loss.
Decks, Patios, and Outdoor Living Spaces
Outdoor additions create more usable living space and add value to your property. They may also increase liability exposure if you’re frequently entertaining guests.
Swimming Pools
A pool can be a wonderful place for family and friends to gather, but it also comes with additional liability risks.
If you’re installing a pool, talk with your insurance agent about whether your liability coverage is sufficient.
Detached Structures
Adding a detached garage, workshop, shed, or other outbuilding may require updates to the portion of your policy that covers structures separate from your home.
Finished Basements
Finishing a basement often increases your home’s value and may include additional flooring, furniture, electronics, and personal belongings that should be considered when reviewing your coverage.
Don’t Forget About Personal Property
Home improvements often go hand in hand with purchasing new furniture, electronics, appliances, and décor.
If you’ve recently invested in new belongings, it’s a good opportunity to review your personal property coverage and make sure it still reflects what you own.
Keeping a home inventory with photos and receipts can also make the claims process easier if you ever experience a covered loss.
Liability Coverage Is Worth Reviewing
Some home improvements can increase the number of visitors to your property or create additional liability risks.
Projects such as:
- Swimming pools
- Trampolines
- Outdoor kitchens
- Fire pits
- Large decks
may warrant a conversation about your liability limits.
Having the appropriate liability coverage can provide added peace of mind when hosting family and friends.
When Should You Contact Your Insurance Agent?
You don’t have to wait until a renovation is complete.
In fact, it’s often a good idea to speak with your insurance agent before beginning a major home improvement project. They can help explain how your project may affect your coverage and identify any updates that may be needed once construction is complete.
Protect Your Investment
Your home is one of your biggest investments, and every improvement you make deserves the right protection.
Whether you’ve recently completed a renovation or are planning your next project, reviewing your homeowners insurance can help ensure your coverage keeps pace with the value of your home.
At Hibbs Insurance, we’re here to help you understand your options and make sure your homeowners insurance reflects your home’s current needs.
Contact Hibbs Insurance today to schedule a policy review and protect the investment you’ve worked so hard to build.
