Home or interior remodeling projects can enhance the value and comfort of your home. However, as you plan your renovations, it’s important to consider how these changes may affect your home insurance policy. This blog will explore the significance of home improvements in your insurance coverage and premiums.
Upgrades That Increase Home Insurance Rates
Some renovations can increase the value of your home, which, in turn, might increase the cost of your home insurance. Here are a few examples.
Building a Swimming Pool
Adding a pool can boost your home’s value and appeal, but it also comes with increased liability due to accident and safety risks. This may raise your home insurance premium. It’s wise to consult your insurance provider about adding extra liability coverage or an umbrella policy to protect against potential pool-related accidents.
Adding an Office or Business Space
As remote work becomes more common, adding a dedicated office space can be a valuable improvement to your home. If you plan to use this space for business, it could impact your home insurance policy. Consider obtaining additional coverage for business-related assets and liabilities.
Expanding Your Living Space
Any additions that increase your home’s square footage, like building an extension or finishing a basement, will likely raise property value. As a result, you may need to increase your insurance coverage to reflect the new value of your home.
Renovations That Could Lower Your Insurance Rates
Not all renovations lead to higher insurance costs. Some updates can make your home safer and might qualify you for discounts on your insurance policy.
Updating the Roof
Engaging a contractor near me to replace an old roof can reduce your home’s risk profile, potentially lowering your insurance rates. Modern roofing materials designed to withstand severe weather can be particularly beneficial for homes where storms can pose a threat.
Improving Electrical and Plumbing Systems
Upgrading old and hazardous electrical and plumbing systems can greatly reduce the risk of fires and water damage, potentially lowering your home insurance rates. These improvements signal to your insurance provider that your home is less likely to face issues that could result in claims.
Installing Security Systems
Improving security with measures like burglar alarms and surveillance cameras can deter theft and vandalism, lowering your risk of filing a claim. Many insurance companies offer discounts for homes with monitored security systems, reflecting this reduced risk.
Additional Considerations
Discussing your plans with your insurance provider and home remodeler before starting a renovation project is important. Keeping them informed helps ensure your coverage is updated to reflect the increased value and potential risks of your home improvements.
Let’s Start a Conversation!
DreamMaker Bath & Kitchen of Greenville understands the importance of protecting your home while enhancing its value and appeal. We’re committed to providing you with the best service. Call us at (864) 214-0296 or fill out our contact form to schedule a consultation. We serve homeowners in Fountain Inn, Taylors, Travelers Rest, Easley, and surrounding areas.
