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When you want to upgrade or expand your home, renovations can help you create your dream living space. However, these changes may impact your homeowners insurance. If you have renovation plans in the works, here are a few things you should know about insurance coverage before you get started.

A Guide to Renovations and Homeowners Insurance

Should I Do My Own Renovations?

Typically, it’s generally recommended that homeowners only take on projects that they are qualified to perform safely—such as painting walls or changing bathroom fixtures. More complicated jobs—such as roof repairs and flooring installation—should only be performed by licensed contractors. Qualified professionals will have additional insurance that protects against damages they cause during renovations.

Do I Need to Change My Policy Terms During Renovations?

Depending on the nature of the project, you may need to purchase temporary coverage in addition to the standard homeowner policy. For example, if you’re adding a new room, you should invest in a builder’s risk or course of construction policy. This short-term coverage can protect against damages that occur during work—such as those that result from storms, theft, or vandalism.

What Renovations Can Affect Homeowners Insurance Premiums?

homeowners insuranceIn addition to increasing coverage during renovations, you may also need to update your homeowner's policy after the work is complete.  

Certain projects may lower your rates by reducing the overall risk of future damages to your home. Renovations that could reduce your premiums include installing a new roof, replacing old plumbing or electrical systems, and adding a home security system.

Other changes can increase your premiums because they introduce new risks. For instance, swapping a laminate countertop for marble would increase your rates because the new materials add to the property value, and in turn, would boost your coverage needs. Swimming pool or deck installations would also prompt a higher premium because these features increase the risk of injury.  

What Are the Risks of Not Discussing Renovations With My Insurance Provider?

If you do not address renovations with your insurance company, you can be held liable for several damages. A new deck that is damaged by fire, for instance, may not be covered if it’s not listed on your policy. Or, if a guest is hurt in a renovated area of the home, you could be held liable for the injuries.

 

Offering comprehensive property coverage, Siemers Insurance Agency will help make sure renovating is a rewarding experience—not a risky one. Whether you need to start a new policy or update an existing one, this experienced provider will make sure you have the right coverage during and after renovations. Focused on affordability, this Cincinnati, OH insurance agency will also introduce you to a wide range of options to make certain you find a plan that comfortably fits your budget. You can learn more about their insurance products—such as home, life, and auto insurance—on the agency’s website. To review your homeowner’s insurance policy or request a quote, call (513) 469-8877.

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