Home Renovations and Additions: Don’t Forget to Update Your Homeowners Insurance

When you complete a home renovation or build an addition, your property’s value and risk profile change—and that means your homeowners insurance needs to change, too. At Premier Choice Insurance, we often see homeowners overlook this crucial step after upgrading their kitchens, finishing basements, or adding outdoor living spaces. Your existing dwelling coverage might not reflect the new cost of rebuilding your home after a covered loss. If your policy isn’t updated, you could be underinsured—leaving you to pay out of pocket for expensive repairs. Keeping your policy aligned with your home’s current value ensures that every improvement you’ve invested in is fully protected.

How Can Home Renovations Affect Your Home’s Coverage Needs?  

Any major home improvement project can significantly impact your insurance coverage by changing your home’s value, structure, and potential risks. When you upgrade areas like flooring, cabinetry, or roofing, the replacement cost value of your home increases—meaning it would cost more to rebuild after a loss. Similarly, adding new living spaces, such as finished basements, room additions, or detached garages, increases the total square footage your policy must cover. Even aesthetic upgrades like installing high-end finishes or smart appliances can affect how much personal property coverage you need.

Some improvements also introduce new liability protection considerations. For instance, adding a swimming pool, backyard deck, or outdoor kitchen can increase the likelihood of accidents or property damage, potentially requiring additional coverage. At Premier Choice Insurance, we help homeowners reassess their homeowners insurance policies after every major renovation, ensuring that all new investments are properly protected and fully reflected in their updated coverage.

Which Types of Renovations Require a Policy Update?

Not all home projects require a major policy change—but many do. As a rule, if your renovation affects your home’s structure, value, or livability, you should inform your insurer. Some examples include:

• Kitchen or bathroom remodels using higher-end materials
• Room additions or expansions that increase square footage
• Basement or attic conversions
• Roof replacements or structural repairs
• New HVAC, plumbing, or electrical systems
• Outdoor upgrades such as decks, patios, or pools

At Premier Choice Insurance, we encourage homeowners to review their coverage whenever these improvements are made. Even minor updates can shift how your insurance premium is calculated or what your policy covers.

What Happens If You Don’t Update Your Homeowners Insurance After Remodeling?

If your insurance isn’t updated, your home’s new features and improvements may not be covered. In the event of a fire, storm, or other covered loss, your payout could be based on outdated coverage limits. This gap can leave you financially responsible for repairing or replacing your new additions. For example, if you spent $50,000 on a kitchen remodel but never adjusted your dwelling coverage, your insurer may only pay for the original kitchen’s value. That means you’d have to cover the difference out of pocket. Failing to update your policy can also affect claims processing and liability protection. If a guest is injured in your newly built area and it wasn’t accounted for in your policy, you might face denied claims or reduced compensation.

How Can Premier Choice Insurance Help You Reassess Your Policy?

At Premier Choice Insurance, we make the process of updating your homeowners insurance simple and stress-free. Our team reviews your current policy and renovation details to determine whether your coverage limits, deductible, or endorsements should be adjusted. Here’s how we support you after a renovation:

• Policy Review: We assess the impact of your upgrades on replacement cost and total coverage.
• Updated Quotes: We compare rates from multiple carriers to ensure your new coverage remains affordable.
• Customized Adjustments: We recommend new policy endorsements for high-value additions like home offices, studios, or smart home systems.
• Peace of Mind: You’ll know that every improvement—from flooring to fixtures—is fully protected.

By updating your homeowners insurance promptly, you safeguard your investment and maintain the full protection you deserve.

What Other Factors Can Influence Your New Premium?

While most home improvements increase your property’s value, they don’t always cause a significant rise in your insurance premium. In some cases, certain upgrades can actually help lower your costs. For instance, installing a new roof or storm-resistant windows can reduce weather-related risks, while updating your electrical or plumbing systems may decrease the likelihood of fire or water damage. These types of renovations make your home safer and more resilient, which can positively impact how your insurer assesses your risk level.

Adding security systems, smoke detectors, and other safety features can even qualify you for valuable policy discounts. At Premier Choice Insurance, we guide homeowners through how each improvement affects both their coverage limits and their premium costs. Our goal is to help you make informed financial decisions and ensure that every renovation not only enhances your living space but also aligns with a well-protected, cost-efficient homeowners insurance policy.

When Is the Best Time to Notify Your Insurance Company?

The best time to update your policy is before or immediately after renovations begin. Informing your insurer early ensures that any damage during construction is covered, and your new improvements are automatically included once complete. If you wait too long, you risk incomplete coverage during the renovation process or a lapse in protection once the upgrades are done. At Premier Choice Insurance, we help homeowners plan their insurance updates strategically to maintain seamless coverage throughout every stage of their project.

Protect the True Value of Your Home – Contact Us

Your home isn’t just where you live—it’s your most valuable investment. When you improve it, you deserve coverage that grows with it. At Premier Choice Insurance, we ensure your homeowners insurance policy accurately reflects the true value of your home, including every new addition and upgrade. Contact us today to review your current policy and ensure your renovations are fully protected with comprehensive, up-to-date homeowners insurance coverage.