When getting work done on your home, it’s crucial to update your insurance to cover all additions. Being underinsured is unfortunately extremely common. Over 50% of homeowners made updates to their home since the pandemic began, with 7 out of 10 homeowners citing plans to renovate in the near future.

How Does a Renovation Affect Your Insurance?

Standard homeowner’s insurance covers losses, depending on the coverage you’ve chosen. Many policies cover damage from things like fire, tornadoes, hail, theft, etc.

When adding onto your home, the cost to rebuild would be greater, as well as the additional cost of any furnishings that were used to fill the new space, which means you’ll likely need more coverage.


Is it Necessary to Report All Renovations?

If the updates are minimal, such as repainting interior rooms or updating wallpaper, it likely won’t increase the cost of your home. It’s always a good idea to go over any changes with your insurance agent, though, as some seemingly small updates can make a difference, such as adding expensive light fixtures, or new flooring.


What if a Contractor Was Hired?

If you hire a contractor to help with updates to your home, take a look at their insurance, as their policy would need to cover any damage that may occur. Your policy likely won’t cover poor workmanship, so it’s imperative that the contractor is insured, as well.


What if it’s a DIY Project?

When making the choice to take projects on yourself (or with the help of family/friends), knowing what your homeowner’s policy covers as far as liability and medical coverage, in case of accidents.


What if the Renovations Were Done Without Proper Permits?

There could be serious consequences for having work done without the proper permits. If the addition is not up to fire or building code, the inspector could ask you to tear down the work and begin again. If this happens, your insurance won’t cover any of the losses incurred.


What About Rental Properties?

It is crucial to update your policy if you update a house you rent out to a tenant, as well. As you aren’t the one living in the home, it’s extremely important to know your losses would be cover in case anything were to happen.


What Policy Changes Can You Expect?

While many changes will likely cause an increase in your premium, that’s not necessarily going to happen. If, for example, you update your roof or add shatterproof windows to your home, your policy may actually decrease, as the home will stand up better to inclement weather.


At the end of the day, taking a little time to speak with your insurance agent will save time and potential headaches in the process. Reach out today for a quote, or more information!