5 Renovations That Could Impact Your Home Insurance (And What to Do About It)
Thinking about giving your home a facelift? Whether you're dreaming of a bigger kitchen, adding a backyard oasis, or creating the perfect home office, renovations are a great way to boost your home's value, comfort, and style. But here’s something homeowners often overlook: your insurance policy might need a little makeover too.
At Northern Chesapeake Insurance, we’re here to help you navigate these changes and keep your home (and wallet) protected. Let’s take a look at five common home improvements that could affect your insurance—and what you should do before the paint dries.
1. Building an Addition or Extra Room
Bigger isn’t just better—it’s also more valuable. Expanding your home adds square footage, which raises the cost to rebuild if something goes wrong. That means your current coverage might not cut it anymore.
Why it matters: If your policy doesn’t reflect your home’s new size or value, you could be underinsured in the event of a loss.
What to do: Let your insurance advisor know about any additions so we can help you adjust your coverage accordingly.
2. Replacing the Roof
A new roof isn’t just a win for curb appeal—it can also score you a break on premiums. Insurance companies love roofs that are durable, impact-resistant, or fire-resistant because they reduce the chance of costly claims.
Why it matters: You may be eligible for discounts depending on the materials you use.
What to do: Notify your insurer once the work is complete to ensure your policy reflects the upgrade—and to take advantage of any savings.
3. Adding a Pool
Ah, the joy of a summer swim! But pools bring more than just fun—they also bring increased liability. That means your insurance needs to keep pace with the new risks.
Why it matters: A pool can raise your premiums and may require additional liability coverage.
What to do: Make sure you have enough protection in case of accidents, and be ready to meet safety requirements like fencing or locked gates.
4. Remodeling the Kitchen or Bathroom
Upgrading your kitchen or bathroom with high-end finishes? Nice! These projects typically boost your home’s value—and the cost to replace or repair those shiny new features.
Why it matters: Your policy needs to match your home’s new value to ensure full coverage.
What to do: After major upgrades, have your coverage reassessed to make sure you’re properly protected.
5. Creating a Home Office or Rental Space
With more people working from home—or turning extra space into income-generating rentals—insurance needs are evolving. Running a business or renting to tenants may not be covered under a standard homeowners policy.
Why it matters: You might need business or landlord insurance to stay protected.
What to do: Talk to your agent about what kind of coverage fits your new setup. Better to check now than find out after the fact.
The Bottom Line: Renovations = Reassessment
Home improvement is exciting—but don’t forget that insurance should be part of the plan. Failing to update your policy after a major renovation could leave you underinsured, or worse, facing unexpected out-of-pocket costs. At Northern Chesapeake Insurance, we’ll help you review your policy and make smart, informed adjustments as your home evolves.
FAQs
1. Do I need to notify my insurer after a renovation?
Absolutely. Any significant change to your home’s structure or value should be reported so your policy stays accurate.
2. Can renovations lower my insurance costs?
They sure can—especially improvements that reduce risk, like a new roof or upgraded security system.
3. Will adding a swimming pool increase my premiums?
Most likely, yes. Pools increase liability risk, which means higher premiums and the need for more liability coverage.
4. What kind of insurance do I need for a home office or rental space?
You may need additional coverage like business insurance or landlord protection. Let us help you find the right fit.
Ready to Renovate? Let's Talk First.
Before you pick up that sledgehammer, give us a call. We’ll walk you through how your project might affect your insurance and make sure your coverage is keeping up with your home improvements.
📞 Call Northern Chesapeake Insurance 410-420-3080
🖥️ Visit: www.ncins.net