Home Insurance Renovations: The Impact on Coverage

05 Jun Home Insurance Renovations: The Impact on Coverage

All homeowners plan a renovation to transform their homes. But amidst the excitement, it’s important to consider how renovations can impact your homeowners insurance. Let’s continue reading to explore renovations that can swing your premiums in opposite directions.

Renovations That Can Increase Your Premiums

Some renovations undoubtedly enhance your home’s value and functionality, but they can also raise your insurance costs. Here’s why:

• Increased Dwelling Coverage Needs: Renovations often add value to your home. This means your existing coverage might not be enough to rebuild it entirely in case of a covered loss. You might need to increase your dwelling coverage limits to ensure adequate protection, leading to higher premiums. Some examples are kitchen remodels, bathroom upgrades, adding a room, and finishing a basement.
• Swimming Pools: Alluring but risky! Pools pose a drowning hazard, and your insurance company might require additional liability coverage to account for this increased risk.
• Fireplaces and Wood-Burning Stoves: Cozy additions but require proper maintenance. If a fire originates from these features due to negligence, your claim might be denied without the appropriate coverage. Talk to your agent about endorsements that address these specific risks.
• Home Offices: The remote work trend has many homeowners converting spare rooms into dedicated offices. Standard homeowner policies might not cover business equipment or increased foot traffic associated with a home office, so additional coverage might be necessary.

Renovations That Can Lower Your Premiums

Upgrading your home doesn’t always have to mean a higher insurance bill. Here are some renovations that can actually lead to premium savings:

• Security Systems: Installing a monitored alarm system deters burglaries and can lead to significant premium reductions.
• Upgraded Roofing: Replacing an old or damaged roof with a more durable material less susceptible to wind or hail damage can qualify you for discounts.
• Improved Plumbing: Upgrading outdated plumbing systems with newer, leak-resistant materials can reduce the risk of water damage claims, potentially lowering your premiums.

It’s crucial to check with your insurance company about specific discounts and eligibility requirements for these safety and security upgrades.

Save on Homeowners Insurance Premiums with Renovations and Us

At Kevin S. Dougherty Insurance Agency, we understand that navigating renovations and insurance can be complex. Based on your renovation plans, we’ll analyze your coverage and identify potential gaps. Our expert agents will discuss increasing dwelling coverage limits or recommending specific endorsements to address new liability risks. Contact us at Marci and Kevin today! We’re here to guide you through the intricacies of renovations and keep your home well-covered. Call us at (630) 575-0800 to get started.