Home Renovation Projects that Impact Your Insurance

Home renovations have become common for homeowners across the US, with a surge in popularity in recent years. In 2020, a significant portion of renovators belonged to the Baby Boomer and Generation X generations, seeking to modernize and enhance their living spaces. However, amidst the excitement of revamping your home, it's essential to be aware of how these changes can impact your homeowners' insurance.

To get you started, here's a breakdown of six common home renovations and how they can affect your coverage.

1. Performing Kitchen Renovations: Dreaming of a sleek and modern kitchen? Before you embark on the journey of updating countertops and cabinets, consider the insurance aspects. Verify the legitimacy and coverage of contractors like electricians and plumbers before allowing them to work on your property. Additionally, consult your independent insurance agent to ensure your homeowners' insurance coverage is adequate for the increased value and potential risks associated with kitchen renovations.

2. Conducting a Bathroom Makeover: This a Home Renovation that Impact Insurance. Planning a bathroom makeover with stylish upgrades? Take note of insurance considerations as you proceed. When engaging a professional plumber, confirm that they carry their own insurance to protect against any potential damages. For materials stored on-site before the project begins, discuss adding builders risk policy.

3. Converting a Room into a Home Office: Transforming an unused room into a home office can enhance productivity and convenience. While it might not entail a massive addition, there are critical aspects to consider. If your home office will store valuable equipment, inquire about home business endorsements to ensure adequate coverage. For those running a business from home, discuss the need for an entire business insurance policy to safeguard your professional activities.

4. Finishing a Basement: Another Home Renovation that Impacts Insurance is creating more living space within a basement. Converting your dusty basement into usable living space can expand your home's functionality. However, this ambitious project warrants a thorough insurance review. If you won't reside at home during the renovation, discuss vacant home insurance with your agent. Additionally, consider adding water backup coverage for a new sump pump and explore possible coverage discounts for updated plumbing, wiring, or security.

5. Adding a Deck or Porch: Enhancing your outdoor space with a deck or porch calls for careful planning to avoid potential risks. Before beginning the project, check local ordinances and apply for any necessary permits. If you plan to undertake the project yourself, ensure your health insurance covers potential injuries. For hired contractors, request proof of insurance to protect against unforeseen mishaps.

Insurance Considerations with DIY Renovations: If you take the DIY route for home renovations, don't overlook your liability coverage. Review your policy to ensure it covers third-party injuries or property damage while working at your home. Furthermore, remember to add builders risk insurance to safeguard valuable materials from theft or weather damage until the project is complete.

Embarking on home renovations is an exciting journey filled with the promise of a rejuvenated living space. Throughout this process, consulting an independent insurance agent is crucial to safeguarding your investment. From kitchen makeovers to basement transformations, each project comes with specific insurance considerations. As you dream big and renovate your home to perfection, keep your insurance agent informed of your plans, ensuring your newly upgraded home receives the comprehensive coverage it deserves. Let the transformation begin with the right protection in place!