How Home Renovations Can Impact Your Insurance Coverage

​Planning a remodel?

​Learn how home renovations can increase your insurance needs—and what updates may trigger new underwriting requirements.

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Why Renovations Affect Your Insurance
Renovating your home can increase its value and risk profile. Most homeowners forget to update their coverage after adding square footage or upgrading materials—potentially leaving them underinsured.

Common Renovations That May Trigger Insurance Updates

• Kitchen remodels
• Room additions
• Finished basements
• New roof or HVAC systems
• Pool installations

Each of these can increase your dwelling value and require a policy adjustment.

Coverage Gaps to Watch For

• Outdated Dwelling Coverage: If your policy is based on pre-renovation value, a loss could leave you with a rebuild shortfall.
• Liability Risks: Adding a pool or deck increases the risk of guest injuries.
• Permit-Required Work: Insurers may ask if permits were pulled for certain jobs.

Be Cautious of Carrier Guidelines
Some insurers have strict underwriting rules around:

• Certain types of roofing materials
• Historic homes and additions
• Unfinished construction at renewal

Always notify your agent before or during a renovation. If not disclosed, a major loss may result in denied or reduced coverage.

Insurance Recommendations

• Safeco and Allstate recommend reassessing your home replacement cost after any major upgrade.
• Foremost Insurance has flexible options for older or modular homes being upgraded.
• Your insurer may send an inspector post-renovation.

Pro Tip: Update Your Inventory
​If you're adding high-end appliances, built-ins, or flooring, update your home inventory list. This ensures your personal property coverage reflects your current belongings.

Disclaimer: This article is for educational purposes only. Coverage varies by carrier and state. Always consult your licensed insurance professional before starting a renovation or updating your policy.