Renovations to your home can be a fantastic way to boost its value and your enjoyment of it. After all, we spend so much time in our homes, so why not make them the best they can be?

Before diving into your renovation plans, though, it’s smart to think about how they might affect your homeowners’ insurance. Some updates could even influence your ability to file a claim if the unexpected happens after the work is done.

Curious about how different renovations might impact your insurance coverage? Read on to find out more!

Square Footage: 

If you’re adding square footage to your home as part of your renovation, it’s a good idea to update your insurance policy. With more space, rebuilding costs can go up, so your homeowners’ insurance should reflect that increased value. This helps ensure you have adequate coverage for a total rebuild, should anything unexpected happen.

Accurately measuring your new square footage is key—then you can confidently share the update with your insurance agent. It’s also wise to chat with your broker about adjusting coverage limits to make sure you’re fully protected. When expanding your home, ask for a detailed review of your coverage, and go over any effects on dwelling and liability insurance with your provider.

Customization: 

Adding custom structures like a mother-in-law suite or a beautiful new deck is a fantastic way to enhance your home. These upgrades can bring a lot of value, but they also mean it’s time to update your insurance policy’s dwelling coverage and liability limits to reflect the changes.

Be sure to keep your insurance agent in the loop about these new additions before they’re built. Share specifics like square footage, the materials you’ll be using, and how you plan to use the space. This way, your policy can be adjusted to accurately cover your new investment, giving you peace of mind.

Building Materials:

Opting for luxury building materials, like porcelain tile or custom wood finishes, adds a touch of elegance to your home—and it’s a fabulous investment. These high-quality materials can increase the cost to repair or rebuild, which in turn can raise your home’s replacement value.

While upgrading with premium materials may affect your insurance costs, it also means you’re elevating your home’s style and value. It’s worth chatting with your insurance agent to ensure your policy covers these beautiful new additions appropriately.

Household Items:

When sprucing up your home, it’s a great time to think about your personal property coverage. Renovations often bring new furniture, fixtures, and sometimes even fancy appliances into your space, which can add significant value.

Take a moment to chat with your insurance agent about whether replacement cost or actual cash value coverage is the right choice for your upgraded space. Replacement cost coverage will cover the full amount to replace items, while actual cash value only covers the depreciated value. For those pricier upgrades, replacement cost coverage might be worth considering, as it ensures you’re fully covered for today’s prices.

Liability Coverage: 

Adding fun upgrades like a pool or hot tub can make your home the go-to spot for friends and family, but they also come with extra considerations. Anytime you bring in things like pools, trampolines, or even a large dog, it’s wise to think about liability coverage to ensure everyone stays protected.

When planning these additions, it’s a good idea to meet with your insurance agent to review your liability limits. They can help you decide if an umbrella policy would be beneficial, which offers added peace of mind by covering costs beyond your standard homeowners’ policy. After all, with a few extra steps, you can enjoy those fun features while keeping things worry-free for you and your guests.

Roofing:

Getting a new roof can be a great way to potentially lower your insurance premiums! With the changing seasons, roofs can take a beating, so it’s a good idea to have them inspected every few years to keep things in top shape.

Before you start, have a chat with your roofer about using damage-resistant materials. For example, a metal roof can be a fantastic option since it’s known to last for decades. Upgrading to impact-resistant materials like tile, metal, or fiberglass can also help you qualify for insurance discounts. These materials tend to stand up better against the elements than traditional asphalt shingles. 

Don’t forget to document the new roof and let your insurer know—it could lead to some nice savings on your premium!

Plumbing and Electrical:

Upgrading your electrical wiring and plumbing can be a smart move for lowering insurance premiums. Old systems often lead to claims, so updating them helps minimize risks. Issues like faulty wiring or leaky plumbing are common culprits behind water damage, so a little investment in these upgrades goes a long way in keeping your home safe.

Make sure to document these improvements for your insurer, as they often lead to lower premiums due to reduced risks. It’s also wise to have a full inspection done by a professional to catch any hidden issues before they become big problems.

Are Renovations Worth Any Rate Increases?

Home renovations can sometimes lead to higher homeowners insurance rates, but the benefits they bring to your quality of life and property value are worth it! When considering updates, think about improvements that enhance safety, such as a new roof or modernized electrical and plumbing systems. Not only do these projects help create a safer environment, but they might also qualify you for discounts that can help balance any increase in your premiums.

Investments in luxury finishes or expansions can boost your home’s value more significantly than the rise in insurance costs. Keeping the right coverage is crucial. It’s all about teamwork with your insurance agent to make the best choices. With a bit of planning and open communication, your renovations can elevate your property while keeping insurance impacts minimal!

Stay Covered, Stay Confident—Alexander Insurance Has Your Back

Ready to tackle those renovations but feeling overwhelmed by how they’ll impact your insurance? At Alexander Insurance Agency of St. Charles, we get it! When the plans are set and the materials start rolling in, the thrill of seeing your home take shape is unbeatable. We’re here to provide truly personalized service, helping you understand exactly how each change affects your policy.

We’re dedicated to finding you the most economical solutions without compromising on coverage. So, before you swing that hammer or tile that new bathroom, let’s chat! Get in touch today and experience what sets Alexander Insurance apart—where your peace of mind is our priority!