What Happens to Your Home Insurance When You Make Renovations?

Home renovations—whether it’s adding a bathroom, upgrading your kitchen, or building an extension—can be exciting. But while attention often goes to design choices and contractor schedules, it’s important to consider how these changes might impact your home insurance.

How Renovations May Influence Your Insurance Profile

Renovations can affect your home insurance by changing your property’s risk profile and rebuild value, two key factors that influence premiums and coverage limits.

Upgrades that increase property value, such as premium materials, expanded square footage, or modernized home systems, may raise the cost to repair or rebuild after a covered loss. Beyond value, certain improvements may impact risk. For instance, replacing an aging roof or updating electrical systems may reduce the likelihood of damage or fire, potentially lowering premiums. Conversely, additions like swimming pools or other high-liability features may introduce new exposures that affect policy terms and pricing.

The team at Esquivel Insurance Agency can review your coverage to check that your renovations are appropriately reflected and financially protected.

The Importance of Timely Communication

It’s important to notify your insurance provider before starting any major renovations. Many policies require disclosure of structural changes or upgrades above a certain value. Failure to report modifications may complicate future claims or result in coverage gaps.

Depending on the project’s scope, reassessing the property’s value or considering temporary coverage, such as a builder’s risk policy, may be advisable if your home will be vacant or exposed to elevated construction risks.

Post-Renovation Review and Adjustments

Following renovations, a professional appraisal or inspection can validate the property’s updated value. This can check that coverage reflects current replacement costs and new features. Reviewing personal property coverage may also be wise, particularly if you add new furnishings, appliances, or high-value fixtures.

Home Insurance in Houston, TX

Renovations can enhance your home’s comfort and value, but may also shift your insurance needs. Contact Esquivel Insurance Agency today to review your coverage.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.