How Home Renovations Impact Your Home Insurance

Home renovations can offer a plethora of benefits, including an increase in your property value. But it’s crucial to consider your home insurance with HighPointe Insurance Services LLC in Overland Park, KS, as upgrades, whether small or large, may considerably affect your home insurance.

Increased Coverage Needs

Major upgrades or multiple renovations in various parts of the home will likely raise your property’s value. This includes things like finishing off your basement, adding a grandparent’s suite, or putting in a new room. Remember, your home insurance is primarily designed to cover the cost of rebuilding your home after a disaster, so you need to report any renovations and upgrades to your insurance representative. This will ensure that the current state of the house is accurately reflected in your policy coverage.

Reconsidering Liability Coverage

Certain types of home additions, such as a swimming pool, outdoor kitchen, or even a new outdoor deck, may require more liability coverage. Amenities like a new swimming pool or hot tub pose a higher risk. Therefore, even when installing an above-ground pool, consult your insurance representative to double-check that the policy will honor related claims.

Adjusting Premiums

Renovations can also impact your insurance premiums. Upgrades like installing a new roof or updating electrical systems can lower your premiums as they reduce the risk of damage or hazards. However, luxury upgrades such as a swimming pool or expensive custom features may raise your premiums as they increase the home’s risk or replacement cost.

Home renovations can improve your lifestyle and provide comfort for your family and guests. But be sure to inform your insurance representative at HighPointe Insurance Services LLC, serving Overland Park, KS, about all significant changes to ensure you have the appropriate coverage for your renovated home.