Home Renovations and Your Insurance Policy: What You Need To Know

Home renovations are an exciting venture, offering the chance to update, improve, and personalize your living space. However, while you might be focused on the aesthetics and functionality of your new kitchen, bathroom, or addition, it’s crucial not to overlook how these changes can impact your home insurance policy. Here’s what you need to know about home improvements and your insurance coverage from the helpful experts at Bundle Bee Insurance.

How Home Improvements Affect Insurance Coverage

1. Increased Home Value: Significant renovations can increase the value of your home. Whether you’re adding an extra room, upgrading your kitchen, or installing a new roof, these changes can raise your home’s replacement cost. This means that in the event of a total loss, it would cost more to rebuild your home. To ensure you’re adequately covered, you might need to increase your dwelling coverage.
2. Additional Structures: If your renovation includes adding structures such as a detached garage, shed, or gazebo, you’ll need to inform your insurer. These structures often require additional coverage under your policy.
3. Enhanced Features: Upgrades like a new security system, fire-resistant roofing, or modern electrical systems can make your home safer and less risky to insure. These improvements might qualify you for discounts on your home insurance premiums.

Necessary Changes to Your Insurance Policy

1. Updating Your Policy: Always notify your insurance company about any major renovations. Failing to update your policy can result in insufficient coverage if you need to file a claim. Discuss with your agent the nature of your renovations and the expected increase in your home’s value.
2. Reevaluating Coverage Limits: After renovations, review your coverage limits to ensure they reflect the new value of your home and any additional structures. You might need to adjust both your dwelling and personal property coverage.
3. Liability Coverage: Renovations can increase the likelihood of accidents on your property, whether it’s construction workers or delivery personnel. Increasing your liability coverage can provide additional protection in case someone gets injured and decides to sue.
4. Home-Based Business Considerations: If your renovations are to create a home office or workspace, make sure to inform your insurer. A home-based business can affect your coverage needs and might require a home business insurance policy.
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Tips for Ensuring Adequate Coverage

1. Keep Records: Document all renovations with receipts, contracts, and photographs. This helps in accurately updating your policy and can be invaluable if you need to file a claim.
2. Consult Your Agent: Before starting renovations, consult with your bundle bee insurance agent to understand how the changes will impact your policy. They can guide you on necessary adjustments and additional coverage.
3. Reassess Annually: Even if you’re not renovating, it’s a good practice to reassess your insurance coverage annually. This ensures that any improvements or acquisitions over the year are adequately covered.

Ensure Your Home Renovation Stays Protected with Bundle Bee Insurance Agency

Home renovations are a fantastic way to enhance your living space and increase the value of your property. However, these improvements can significantly impact your insurance coverage. By understanding the necessary adjustments and communicating with your insurer, you can ensure that your home remains adequately protected. 

At Bundle Bee Insurance, we’re here to help you navigate these changes and provide the best coverage for your needs. Get a Quote online or call us at 888-448-2831 to discuss how your renovations might affect your policy and what steps you can take to stay protected!