Home Renovations & Insurance: Why Your Agent Should Be Your First Call
Home improvement projects are exciting—until you realize there’s more to it than just picking paint colors and watching HGTV. Whether you’re finally upgrading that avocado-green bathroom or splurging on a backyard pool, there’s one thing you might not have thought about: your insurance.
Yep, before you dive into renovations, it’s a good idea to give your insurance agent a quick call. Here’s why.
Your Home’s Value Just Changed—Did Your Insurance?
Your homeowner's insurance is based on what it would cost to rebuild your home if disaster struck. So, if you’ve just added a fancy kitchen or a brand-new deck, your policy might not reflect that new value. That could leave you underinsured, which is insurance-speak for “paying out of pocket if something goes wrong.”
Which Renovations Might Affect Your Coverage?
Not all home updates require an insurance adjustment, but these big ones do:
- Adding Square Footage – Bigger house = higher replacement cost. Simple math.
- Kitchen or Bathroom Remodels – Swapping out builder-grade cabinets for custom ones? You’ll want to make sure your policy covers those upgrades.
- Roof Replacement – A new roof can actually lower your premiums, especially if it’s wind- or impact-resistant.
- Installing a Pool – Cannonballs are fun. Pools are expensive. Lawsuits? Not so much. Pools come with extra liability risks, so you might need more coverage.
- Building a Shed, Garage, or Guesthouse – If it’s not attached to your home, it may not be covered under your current policy limits.
What Happens If You Forget to Update Your Policy?
Short answer: Nothing good.
Longer answer: If disaster strikes and your insurance hasn’t been updated, your payout might not cover your new improvements. That means all those hard-earned dollars you poured into your remodel could go poof. Plus, some policies actually require you to report major updates—so don’t skip this step.
Good News! Some Renovations Can Save You Money
Insurance isn’t just about spending money—it’s also about saving money. Certain home improvements can lower your premiums. For example:
- New Roof? Many companies offer discounts for wind-resistant materials.
- Upgraded Electrical or Plumbing? Reduced risk of fire or leaks could mean lower rates.
- Security System? Some insurers will give you a price break for adding monitored alarms.
It’s worth checking in to see if your improvements qualify for a discount.
Other Reasons to Give Your Agent a Call
While you’ve got your insurance agent on the line, you might as well review your policy if:
- You’ve started a home-based business
- You’ve adopted a new pet (some breeds can affect liability coverage)
- You’ve added expensive items like jewelry, art, or high-end electronics
- You’re renting out part of your home
Home Renovations and Insurance
Q: Do I need to update my home insurance if I renovate?
A: Yes! Major upgrades like kitchen remodels, new additions, or a new roof can increase your home's value, meaning your current coverage may not be enough.
Q: Will my home insurance cover my renovation project?
A: It depends. Some policies cover renovations, but others may require a special endorsement or builder’s risk policy. Always check with your agent before starting work.
Q: Can renovations lower my insurance premiums?
A: Yes! Upgrades like a new roof, modern electrical systems, and security enhancements can qualify for discounts.
Q: Does my policy cover contractors working on my home?
A: Your liability coverage may help, but it’s crucial to ensure your contractor has their own insurance, including workers’ compensation.
Q: What happens if I forget to update my policy after renovations?
A: You could be underinsured, meaning you may not receive full coverage if a claim is filed. Always update your policy to reflect your home’s new value.
The Bottom Line
Home renovations are an investment, and protecting that investment is just plain smart. A five-minute chat with your insurance agent can save you from big headaches later—and who doesn’t love a little peace of mind?
So, before you celebrate your home makeover with a margarita on your brand-new deck, call Augustyniak Insurance Group and make sure your coverage is keeping up with your dream home. Please call us today at 904-268-3106 to review your policy or get a quote..
