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Before commencing home renovations, it’s important to consider all the implications of the finished product. After all, remodels can affect everything from your home’s property value to its utility usage. Some renovations can even influence homeowners insurance premiums. Here are some of the most common remodels that can raise or lower coverage rates. 

What Kinds of Renovations Affect Homeowners Insurance?

1. Building an Addition 

Increasing the square footage of your home will increase coverage rates. One of the biggest factors that influences premiums is the cost to rebuild. Since larger structures cost more to rebuild, they cost more to insure, as well. Similarly, converting unlivable space into livable space—by finishing a basement, for example—will also cause a jump in homeowners insurance rates. 

2. Replacing the Roof 

homeowners insuranceThe roof is solely responsible for sheltering your home from wind, rain, hail, and snow. As such, its condition has a major impact on overall insurance premiums. Replacing your roof is a costly renovation, but it could save you a considerable amount of money every month. To optimize savings, ask your insurer about available discounts for additional preventative features, such as waterproofing renovations. 

3. Remodeling the Kitchen 

If your kitchen is outdated, remodeling it can be a sound investment. Aside from bedrooms and bathrooms, after all, you probably spend most of your time in this room. While it will certainly cost more to rebuild a totally new kitchen, you may be able to cancel out the spike in coverage by upgrading the home’s plumbing and electrical systems in the process. Generally speaking, modifying the utilities in older homes to meet new codes will yield lower premiums. 

 

To see how the renovations you're planning will affect your homeowners insurance premiums, turn to MP Davis Insurance Agency. Located in Randleman, NC, this independent agency has been serving clients throughout the Piedmont Triad area for more than 40 years. For exceptional coverage with competitive rates, visit their website or call (336) 498-7606. 

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