Renovations and Home Insurance: Adjusting Your Coverage During Remodeling

Home renovations can be an exciting yet challenging endeavor. Whether you’re adding a new room, updating your kitchen or making structural changes, it’s crucial to consider how these improvements impact your home insurance.

Understand the Impact of Renovations

Renovations can significantly increase the value of your home. While this is great for your property’s market value, it also means that your current insurance policy might not provide adequate coverage. For instance, if you’ve added a new room or upgraded your kitchen with high-end appliances, the replacement cost of your home has increased. This typically necessitates reviewing and adjusting your home insurance policy to ensure that it covers your home’s new value.

Notify Your Insurance Provider

Before you start any renovation project, it’s essential to inform your insurance provider. This communication is crucial because some renovations can increase the risk of damage or accidents. For example, adding a swimming pool or a new roof might require additional liability coverage. By notifying your insurer, you can discuss the scope of your project and determine if you need to adjust your coverage limits or add endorsements to your policy.

Consider Temporary Coverage During Construction

During the renovation period, your home might be more vulnerable to risks such as theft, fire or water damage. Consider purchasing a builder’s risk policy, which can provide coverage for these specific risks during construction. This policy can cover materials, fixtures and equipment used in the renovation, offering peace of mind that your investment is protected.

Conduct a Post-renovation Review

Once the renovation is complete, conduct a thorough review of your home insurance policy with your provider. Ensure that all the new additions and upgrades are adequately covered. This might involve increasing your dwelling coverage limit or adding specific endorsements for high-value items.

Learn More

Contact Craddock Insurance Services to review your homeowners insurance policy today.

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.