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How Home Renovations Can Impact Your Home Insurance

Impact Your Home Insurance


Renovating your home can add value and bring out its full potential. Nevertheless, it is important to understand that these changes can also affect the home insurance. Home renovations often lead to changes in your home insurance in many ways- may it be an extension, kitchen upgrade, or new roof.

Remodeling your house can also add to its total value and may require that you change your insurance coverage limits. Furthermore, some renovation projects like installing a swimming pool or improving the electrical system may lead to enhanced liability, hence need for more insurance cover.

Knowing the impacts of renovation on your home insurance is essential during and after the renovation. However, you should ensure you inform your insurance company and update your insurance policy when necessary in order to protect your home and other valuable assets.

Below we discuss how home renovations can impact your Home and Auto Insurance Nevada policy negotiations. Please feel free to reach out for more information on the same.

Impact of Changes in Home Values and Reconstruction Costs

Constructing an additional room, expanding an existing one or remodeling the kitchen or the bathroom automatically increases the worth of your home. This implies that the home insurance policy should also be reviewed to be able to incorporate the increased value of the home.

Also, renovations can influence the price of replacing your house in case of a total loss. Ask your insurance provider if the policy also includes an additional reconstruction cost if the property is damaged or destroyed in a disaster.

Safety Benefits and Risk Mitigation

Safety enhancements and upgrades to existing systems such as electrical, plumbing, or heating systems are common in home improvement projects. Such improvements can help in reducing the chances of accidents or damages, which may mean reduced insurance rates.

For example, putting in security systems, smoke detectors, or a sump pump reduces risks and entitles you to incentives from your insurance company. This is a plus for most company’s’ as it means reduced claims.

Renovation Materials and Contractors Insurance

Property crimes may also occur due to the presence of valuable items and tools that are used during renovation works. These items are typically covered under standard home insurance policies but you should check your policy limits and purchase additional coverage if necessary.

Lastly, if you plan to engage contractors for renovations, make sure they have insurance in case of liabilities or damages that may arise during work.


Home renovations can affect your home insurance coverage in a number of ways. It is important that as you improve your property, you also consider boosting your insurance policy to cater for the increased value of the property as well as the arising risks associated with construction and liabilities.

To achieve this, you need to let your insurer know about the changes in your home and how renovations may affect your coverage. The above article has discussed how home renovations can impact your home insurance, and you can reach out for more information.

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