Certain home renovations can increase the value of your house or impact potential risks – both of which can affect your homeowners insurance. On average, renovations to your home increase its value by at least 25%, but most homeowners don’t increase their coverage accordingly. Disclosure1 If you’re planning on tackling any of the home renovations listed below, remember to reach out to one of our insurance professionals to make sure your insurance coverage is up to date. 

Kitchen and bathroom renovations account for about 80% of all home renovations. Disclosure2 New counter tops, new floors, new appliances, maybe even a new layout all together -- all of the exciting design aspects of the renovation add tremendous value to your home. Talk to your insurance provider to determine if the renovations will increase your property value, and subsequently, if you need to increase your coverage.

Also note that most homeowners insurance plans don’t cover the financial burden of repairing or replacing appliances or systems in your home that break down due to everyday wear and tear. For additional coverage, consider adding a home warranty plan.

Whether you’re building a garage, a large deck, or a whole addition onto your house, expanding your home will increase its square footage and its value. Whenever the value of your home increases, you may need to increase your coverage as well. If you’re building a deck off of the second story of your home or higher, you might need to adjust your policy to cover the increased risk associated with the new addition.

Finishing your basement means increased livable space, increased value, and increased risk of damages due to flooding. Most homeowners insurance plans don’t cover flood damages, so you should review your policy with an insurance professional and discuss ways to protect your basement from flooding. 

Experts estimate that adding a pool to your property can increase its value by about 7% Disclosure3 However, it also increases the risk of accidents on your property. Having a pool usually makes your house the go-to spot during the summer months, which means more guests at your house and a greater possibility of someone slipping and falling around the pool. An insurance professional will most likely recommend that you increase your liability coverage, and add additional safety measures (e.g. building a lockable fence around the pool, forgoing diving boards and slides, etc.). Disclosure4

Redoing your roof not only can increase the value of your home, but it can also result in lower premiums. A newer, stronger roof means there’s less risk of wind, heavy rain, and hail causing costly damages to your home. Check with your insurance carrier if redoing your roof makes you eligible for any discounts. 

If you’re hiring a contractor for your home renovation, remember to always ask for proof of insurance. A contractor not having the necessary coverage to safely complete your project (such as general liability insurance and worker’s comp) is a huge red flag, and you should look for another contractor.

Natural disasters and accidents such as hurricanes, tornadoes, and electrical fires happen to unsuspecting – and ill-prepared – homeowners every year. If something were to happen to your newly renovated home, it would be devastating if all the hard work, savings, and time you put into those renovations went to waste. Talk to your McGriff broker today to check if your home has adequate coverage.