Home renovations are exciting, providing an opportunity to replace outdated materials and revamp the look of your home to better suit your lifestyle. However, what many don’t realize is the effect that these changes can have on homeowners insurance. Consider the following before finalizing your plans to determine how they might alter your current policy.

How Renovations Affect Insurance Policies

It all depends on the renovations that you’re planning to perform. Those that install new materials in place of ones that are falling apart could cause a slight decrease. Their lengthy lifespan reduces the potential for sudden repairs and prevents the need for financial support.

On the other hand, creating additional living space could cause your premiums to go up. Not only does the insurance agency consider the potential hazards, but also the extra material that they have to cover when it comes time to file a claim.

Changes That Have a Direct Impact on Rates

Learning to recognize why certain renovations impact homeowners insurance could simplify the planning process and reveal how to prioritize each project. Consider the impact of these three renovation projects.

• Roof: Many insurance companies base their rates on the age of the roof and its ability to provide protection. Choosing to replace your roof could lower your rates by as much as 10% to 20%.
• Office: Small business owners that utilize space for an office might see a slight increase in their insurance policy. It provides additional protection for the company that won’t take away from the home’s initial coverage.
• Kitchen: Installing high-end materials, such as granite countertops and smart appliances, will require a larger policy to supply ample coverage. Alternatively, upgrading an outdated electrical or plumbing system could increase the safety of the home and cause a small reduction in your premiums.

If you’re in need of homeowners insurance, reach out to Barnes & Howell Insurance. This independent agency provides personal, business, and auto insurance policies throughout Gainesville, GA. With a firm commitment to customer service, these professionals are ready to answer your questions and provide you the most competitive rates available. Call (770) 718-0202 to request an insurance quote. Visit their website for additional information on their policies.