Home Renovations and Insurance: When Do You Need to Update Your Policy?

Home renovations can be exciting, helping to transform your living space into your dream home. However, updating your home insurance policy to safeguard your home improvements and avoid potential coverage gaps is crucial.

Why Update Your Policy?

Renovations can significantly alter the value of your home. If your policy isn’t updated to reflect these changes, you could be left underinsured if your home is involved in a covered peril (e.g., fire). Your policy may not cover the full costs to repair or replace your property, leaving you with out-of-pocket expenses.

Types of Renovations That May Require Policy Updates

Consider the following types of renovations that may require policy updates:

• Structural changes—Major renovations, such as adding rooms, finishing a basement or extending your home, can increase its value and risk profile, which may necessitate a higher coverage limit.

• Upgrades—Upgrading your kitchen or bathroom with high-end fixtures and appliances can also increase your home’s value. Ensure these improvements are reflected in your policy.

• Safety enhancements—Installing security systems, smoke detectors or fire alarms can reduce your risk and may qualify you for discounts on your premium.

• Outdoor additions—Adding features such as a swimming pool, deck or gazebo can increase your liability risk. Updating your policy can help cover potential accidents or damages related to these additions.

When to Update Your Policy

Many home insurance policies only cover minor DIY and redecoration. Before beginning any major renovations, contact your insurance provider to check that you’re covered. Once the renovation is complete, review your policy to ensure all new additions are included.

Renovation Insurance

For extensive renovation projects, you may want to consider renovation insurance. This specialized coverage can financially protect you during the renovation process, covering risks such as damage to the existing structure, theft of materials and liability for injuries to workers. Renovation insurance can provide peace of mind and help your project proceed smoothly without unexpected financial setbacks.

Home Insurance in Center, TX

Proactively updating your insurance can avoid coverage gaps and provide peace of mind. Contact the team at Shoop Insurance today to find out more.

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.