Embarking on a home renovation project is an exciting endeavor that can significantly enhance the aesthetics, functionality, and overall value of your property. However, there’s an important consideration that often gets overlooked amidst the excitement: your home insurance policy.

The Necessity of Adjusting Your Homeowners Insurance

While renovations and interior remodeling can breathe new life into your home, they can also influence the terms, conditions, and cost of your homeowners’ insurance policy. This is primarily because most renovations increase the value of your home and, subsequently, its replacement cost.

For instance, if you add a luxurious new bathroom or extend your kitchen, the enhanced value of your home may exceed the current dwelling coverage in your insurance policy. It is crucial, therefore, to reassess and possibly adjust your insurance coverage to reflect these changes.

Major Renovations That Impact Insurance Rates

• Building Extensions and Additions 

Expanding the living space of your home, be it through adding a second story or extending the kitchen, directly increases its replacement cost. This necessitates a review and likely an increase in your dwelling coverage to ensure that the new additions are fully protected.

• Upgrading Kitchens and Bathrooms

In our experience as a home remodeler, kitchen and bathroom upgrades are among the most common home renovations. Moving from laminate to granite countertops or installing new high-end appliances not only makes your space more enjoyable but adds significant value to your home. Such upgrades may increase your insurance premiums as your coverage limits may need to be adjusted upward.

• Adding a Pool

Adding a pool to your property can significantly increase both its value and liability risks. Pools are considered attractive nuisances and can lead to higher insurance premiums due to the increased risk of accidents. Your insurance provider may require additional safety features or increase your liability coverage.

• Roof Replacements 

Replacing an old roof with new, more durable materials can have a two-fold effect on your insurance. While it might increase the value of your home, leading to potential adjustments in coverage, it may also qualify you for discounts due to improved resilience against weather damage.

Precautionary Measures and Additional Insurance Options

• Contractors’ Insurance 

Before embarking on any renovation project, verify that your contractor near me has adequate insurance coverage, including liability and workers’ compensation. This is crucial to protect you from potential liabilities in case of accidents during the construction process.

• Vacant Home Insurance

If renovations require a temporary move, ensuring your home is covered during this period is essential. Traditional homeowners’ policies may not cover homes that are unoccupied for extended periods, making vacant home insurance a prudent choice.

Let’s Start a Conversation!

DreamMaker Bath & Kitchen of Colorado Springs encourages homeowners to consult their insurance providers before commencing any major renovations to ensure their coverage is adequately adjusted. This ensures that your home is fully protected, providing peace of mind as you enjoy your newly remodeled space. For more information, schedule a consultation with our experts by calling (719) 350-4598 or filling out our contact form.