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How is Your Home Insurance Impacted if You’re Renovating Your House

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A Young Couple Renovates Their New Home

How is Your Home Insurance Impacted if You’re Renovating Your House

A home insurance policy covers your home from theft, vandalism, and third-party liability claims. To ensure you’re getting value for money, the amount of your coverage should correspond with the value of your property to avoid over-insurance or under-insurance. In fact, you should review your insurance policy regularly in order to fill the insurance gaps and get rid of excess coverage, says the Insurance Information Institute (III). Take note that a major home renovation project can have a significant impact on your premiums. Here’s some more information on this topic.

Getting a New Roof

Due to the high risk involved, most insurance providers do not cover a roof older than 20 years. Even when they do, the cost of insurance premiums is usually high. Additionally, the insurer can deny your home insurance claim citing negligence in case you had an old roof by the time of the damage. This means that renovating your roof not only increases your home value but also lowers the risk significantly, especially if you live in a location prone to hurricanes, wind, or hail. In turn, the insurance company will most likely offer you discounts on your coverage, and hence, lowering the cost of your premiums.

Building a Pool

Data from the Center for Disease Control and Prevention (CDC) shows that about 10 people lose their lives to accidental drowning in the U.S. every day, while tens of survivors end up in the emergency department with severe submersion injuries. This shows just how risky a pool can be in your home. Since a high risk translates to high insurance premiums, your home insurance cost will most likely go up if you build a swimming pool in your home.

Running a Home Business

Depending on your insurance provider, your home insurance may or may not cover a home-based business. While some may simply require you to add a property insurance endorsement to your homeowners’ policy, others will ask you to purchase separate commercial insurance. Basically, running a business from home increasing the risk of property damage, theft, and liability claims, especially if you have clients visiting your home. In other words, your home insurance premiums will increase if you add a home-based business insurance endorsement to it.

Expanding Your Space

If you have a new pet or family member living with you, you may want to expand your space for comfort and convenience purposes. For instance, you can add a basement, and this means that you will have to add it to your home insurance coverage. Consequently, your home insurance premiums will go up to cover the additional space in your home.

Upgrading Your Kitchen or Bath

Since renovating your home increases your home value while minimizing risks, your insurance premiums could go both ways. That said, giving your kitchen or bathroom a makeover means that you need to update your insurance. This is because if the renovation increases the value of your home, your old policy will not be able to cover the cost of replacement in case of damage. Therefore, to cover the gaps in your coverage, your insurance premiums will most likely increase. On the other hand, if the kitchen and bathroom upgrades included the electrical and plumbing systems, you may earn a discount on your coverage for the reduced risk.

These are some of the major home renovations that can affect the cost of your home insurance in C.A. To learn about other changes that can affect your home insurance premiums, talk to your home insurance agent. Additionally, for all of your homeowners’ insurance needs, talk to the professionals at Little & Sons Insurance Services today. We operate in Banning and the neighboring cities in California.

Little & Sons Insurance Services

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Little and Sons Insurance Services is your complete insurance resource. Since we were established in 1922, we assist individuals and business owners with all of their insurance needs, whether it be for auto, home, or commercial insurance. As an independent, full-service insurance agency, our duty is to our clients’ best interests.

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