How a Home Renovation Can Raise or Lower Your Insurance Premium

When considering a home renovation, you need to weigh more than the cost of construction and the added value to your house. You should also think about how the renovation will impact your home insurance premiums in the years to come. Your rate could rise or fall, depending on the type of upgrades you make. So, to help you out, we’ve listed a few of the most common renovations that affect premiums.




Additions will, of course, increase a home insurance premium because they add square footage. You may also need to apply for more types of policies, such as sewer backup coverage for a new basement. Remember, if you neglect to reassess coverage needs, you may find yourself in a bind after a damaging fire or storm.


Roof Replacement


It’s not an impressive home renovation project, but a new roof will protect your house. Therefore, many carriers will decrease your rate if you opt for it.


System Upgrades


Any work that makes your home safer will typically decrease your premium. So, you can enjoy lower rates for wiring, HVAC, and plumbing upgrades—particularly if you live in an older home.


Bathroom and Kitchen Remodels


Bathroom and kitchen remodels will most likely increase the value of your home. However, they can also increase your insurance costs. New and upgraded materials will boost the rebuild price, so your house will probably cost more to insure after the home renovation.


Security Systems


As we said before, safety measures can help lower your insurance rates. So, adding a video doorbell or alarm system will help make your coverage more affordable. You’ll also get a lower rate for installing a sprinkler system or any smart technology that detects intruders and potential maintenance issues.


A Pool


A pool may increase home value. But it’s also a liability risk, and it will most likely hike your insurance premiums. However, you might be able to offset that cost somewhat by building a safety fence around it.


These are just a few of the improvements that can impact your coverage. That’s why it’s important to let your Hibbs agent know about any home renovation so they can help adjust your insurance.