Homeowners Home Renovations 

Homeowners often undertake renovations to enhance their living spaces, update their home or increase property value. However, it’s essential to consider how these changes might affect your homeowners insurance.

How Do Home Renovations Affect Homeowners Insurance?

The following are some common home renovations and their potential impact on insurance rates:

• Building a swimming pool—Adding a swimming pool can increase your home’s value and appeal to potential buyers. However, pools are considered attractive nuisances because they pose liability risks. A pool renovation can impact your home insurance in the following ways:

• Higher liability risk—Pools increase the likelihood of accidents, such as slips, falls or drownings. As a result, your homeowners insurance premium may rise due to increased liability exposure.
• Coverage considerations—Standard homeowners insurance includes liability coverage, but pool owners may need higher limits. Some insurers may recommend additional umbrella insurance for extra liability protection.
• Safety measures—Insurers may require safety features like locking fences or safety covers. These precautions can drive up installation costs but are essential for coverage.

• Adding an office for a home business—With remote work becoming more common, homeowners often create home offices. Adding a home office can affect your insurance in the following ways:

• Increased home value—An office adds value to your home, potentially raising your insurance premium.
• Business-related risks—If you run a home-based business, your insurance needs may change. Standard policies may not cover business equipment or liability related to your business activities.
• Business endorsements—Consider adding business endorsements to your policy to protect your business assets and mitigate risks.

• Expanding living space—Expanding your home—whether by adding rooms, finishing a basement or converting an attic—can impact insurance in the following ways:

• Higher rebuilding costs—Larger homes cost more to rebuild, affecting your dwelling coverage. Ensure your policy covers the increased square footage.
• Permits and codes—Obtain necessary permits and comply with building codes during renovations. Noncompliance could affect your coverage.

• Roof replacement—Replacing an old roof can improve your home’s safety and energy efficiency. It can relate to homeowners insurance in the following ways:

• Reduced risk—New roofs are less likely to leak or suffer damage, reducing the risk of claims.
• Potential premium reduction—Some insurers offer discounts for new roofs. Check if your policy includes this benefit.

How to Update Your Homeowners Insurance

Before embarking on home renovations, consult your insurance agent. They can guide you on adjusting coverage, safety measures and potential premium changes. Remember that while renovations enhance your home, they also impact your homeowners insurance.

Contact Guardian Insurance to discuss your homeowners insurance needs and to make sure you have proper coverage for home additions and renovations.

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.