May is National Home Improvement Month, the perfect time to dream, design, and dive into your next big home upgrade. If you’ve been looking around and eyeing which wall you want to knock down next, maybe press pause for just a second.
Before you start swinging your sledgehammer or calling contractors, you might want to consider how your renovation plan is going to impact your homeowners insurance. Depending on the type of project, when it’s all said and done, your policy might require an update, too.
Here are 10 common home improvement projects and how they might impact your homeowners insurance:
1. Kitchen Remodel
Kitchen remodels are among the most popular renovation projects homeowners pursue, and for good reason. We spend a lot of time in this space! The upgrades to this space, such as new countertops, flooring, cabinets, fixtures, layout, or appliances, will likely increase your home’s value. A more valuable kitchen means a more valuable home. If your policy doesn’t reflect the increased replacement cost, you could be underinsured after a loss.
2. Bathroom Upgrade
Next in the line-up is the bathroom upgrade. Bathroom styles tend to change with every decade. If you aren’t willing to wait for the mid-century pink and mint colored tiles to come back in style, there’s a whole array of options available to bring a fresh feel to your old-school restroom.
Minor upgrades, like swapping out old fixtures, may not affect your premium much, but high-end features or expansions can. Water damage in homes is one of the most common claims. Make sure new plumbing is noted and your coverage reflects the updates.
3. Room Addition or Finished Basement
Is it time to make space for another young one in your family? Need some extra space for a relative to move in? Perhaps you just need a little more room for a home office, man cave, or entertainment space. You can do it by expanding your square footage or finishing a basement or attic.
Just like your kitchen reno, your coverage limits should increase to reflect any added livable space. A policy based on pre-renovation square footage won’t be enough if your larger home needs rebuilding.
4. Deck or Porch Installation
Adding outdoor living space like a deck or covered porch is a fantastic way to enjoy more of your property. These structures may affect your liability and property coverage, because they both add value and potential risk (think slips or falls). Make sure they’re listed in your policy.
5. Roof Replacement
This isn’t exactly the homeowner’s dream reno project, but it’s certainly an important… and expensive one. New shingles or a complete roof overhaul could lower your premium if it reduces risk. A newer roof makes your home more resilient to storm damage, and insurers like that.
It’s also possible that your old roof could penalize you, so if you have recently replaced your roof, make sure that you provide proof and alert your insurance agent so that you don’t get dinged.
6. Swimming Pool Addition
Oh, good, back to the fun renovations! An in-ground or above-ground pool installation will add mountains of memories and joyful moments in your backyard, but it also increases your liability risk and may require additional coverage. They’re considered “attractive nuisances” that increase accident risk. If a pool is on your upgrade wishlist, make sure it’s also covered by your insurance.
7. Home Office or Studio Build-Out
Beyond adding additional space, there could be cause to connect with your carrier if you’re converting space in your home for business or remote work. Depending on the type, business property may need separate or additional coverage. Standard policies often limit coverage for business equipment or client-related liability.
8. HVAC, Electrical, or Plumbing Upgrades
Here’s another home essential that might not be your dream project, but modernizing major home systems does come with some perks. Insurers may offer discounts for safety and efficiency upgrades that reduce the likelihood of claims.
9. Security System Installation
This is another win for a potentially lower premium! Adding cameras, alarms, smart locks, and so on to your property gives you added protection, which means lower risk, which ultimately translates into savings on your premium. Win, win, win!
10. Solar Panels or Energy-Efficient Systems
There are many benefits to energy-efficient system upgrades like installing solar panels, smart thermostats, or green tech. These items can increase your home’s value and may need a policy rider or specific mention within your policy to be covered.
Protect Your Home Renovation Investment
Your insurance should grow with your home. Before (or immediately after) you pick up that sledgehammer and start a renovation, give Wichert Insurance a call. We’ll review your policy, explain any necessary updates, and make sure your investment—and peace of mind—is protected. Contact Wichert for a quote today. Let’s make sure your reno wish list is fully covered.