How Home Improvements Affect Your Insurance

Home renovations are a great way to boost your home’s value, but they can also impact your insurance in many ways homeowners don’t realize. Whether you’re upgrading your HVAC unit or adding a sunroom, changing your home affects the risks associated with your property, which means your insurance may need to be adjusted as well.

Ways Renovations Change Insurance Needs

Major upgrades to your home often raise your home’s replacement value. Your insurance coverage should keep up so that you’re able to repair damages after a covered incident. If you purchase upgrades such as designer appliances and custom cabinetry, you may even need to look at special policy endorsements or riders since these often exceed standard coverage limits.

Some renovations, however, are necessary. Installing a new roof or updating your electrical systems may increase your premiums, but they may also earn you discounts and lessen your risk exposure.

Adjusting Your Home Insurance Policy

Consider the following to help maintain proper home insurance coverage:

• Consult and notify your insurer. When considering renovations or upgrades, let your insurer know what you’re planning so you can understand how it will change your coverage and premiums. Your insurer may have recommendations to help secure discounts.

• Increase your coverage limits. When you increase the value of your home, you should increase the dwelling coverage limits to ensure that you can repair or rebuild your home after covered damage.

• Review your liability coverage. Some additions increase liability risks, like adding a pool to your property. Make sure your liability coverage is sufficient to protect you in case of accidents.

• Consider endorsements. Riders or endorsements to your policy for specific upgrades may be helpful. For example, if you build a home office, you may want additional coverage for any business equipment used in your home.

Contact Us

Whether you’re planning a small update or a huge renovation to your home, make sure you have the insurance you need to cover those changes. The team at Tom Reyes Insurance Agency in San Antonio, TX can help you find the right coverage for your renovation plans. Contact us today for a personalized quote or more information

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.