How Home Renovations Increase Your Insurance Premiums

Home Renovations & Insurance Premiums 1

How Home Renovations Increase Your Insurance Premiums

Think you know everything you need to know about your home insurance policy? Well did you know that home renovations can actually cause your insurance premiums to rise? Home renovations can be great for getting that den you’ve always wanted or renovating a room into a master suite, but the reality is that renovations can be incredibly costly for home insurance premiums. This is due to the fact that renovations tend to make properties larger, more improved, and riskier.

Prior to any home renovations, you should contact your homeowner’s insurance agent to ensure your home is protected throughout the process.

Renovations Leading to Larger Property

When it comes to renovating your home, it is a common scenario that your home’s square footage will increase as a result of the renovation – thus meaning the replacement cost of your home increases as well. If you are performing renovations and you don’t consult with your insurance agent or provider, the additional space will not be covered in the event of damage to your home.

Renovations Leading to Improved Property

Another common way renovation can lead to higher premiums for your insurance is remodels to your home that bring in additional or more improved appliances or fixtures. Remodeling your kitchen, for example, may bring in higher-quality brands that increase the value of contents within your home – thus increasing coverage needs. Content coverage does have limitations so to ensure that all your property is covered, maintain an active inventory of your home’s belongings and notify your insurance agent or provider that you need to purchase additional coverage.

Riskier Property Renovations

Any renovation to your home adds additional risks to your property. With contractors working inside and on the roof of your house, it’s important that you hire a contractor with insurance to cover any possibility of injury on your property. Make sure to obtain proof of insurance prior to construction work beginning. If the contractor you choose to use does not have insurance, you may need to increase your liability coverage in your homeowner’s policy to protect yourself – or hire a different contractor.  Additions to your home that are deemed dangerous by insurance providers such as swimming pools can also increase insurance premiums due to the increased danger in pool related injuries for children.

When it comes to renovating your home, it’s important you notify your insurance agent or provider of the upcoming renovations so you can ensure your home is covered no matter what type of renovation you’re seeking to do. Although insurance coverage may increase, you are also increasing the resale value of your property and improving your lifestyle. Renovations can always be risky, so ensure your family and home is protected by contacting your local insurance agent.  If you’re ready to start your renovations, contact AWS Insurance for a free estimate.

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Melinda Martin

Account Executive

Melinda began her insurance career in 1985 with Alexander & Alexander where she received her Property & Casualty and Life & Health license. Since then she has worked at various agencies in the New Orleans area and in California as a senior account manager for Employee Benefit Plans.  While in California, she was also the Membership Director for the Burbank Chamber of Commerce. Melinda joined the AWS team in July of 2015.

Michael A. Seeling

Vice President

Graduated from the University of Louisiana at Lafayette with a B.A. in Insurance Risk Management and is a graduate of Archbishop Rummel High School in New Orleans. He joined AWS in October of 2008 and has been awarded the Patient Protection and Affordable Care Act Certification (PPACA). Additionally, he is working towards his Certified Insurance Counselor (CIC), Registered Health Underwriter (RHU), and Registered Employee Benefits Consultant (REBC) designations. He is also a member of the National Association of Health Underwriters (NAHU), National Association of Insurance Financial Advisors (NAIFA), and is an active member of the Fore!Kids foundation.