Insurance Implications to Consider Before Renovating Your Home

Planning a home renovation is an exciting prospect. Whether you’re considering investing in your dream kitchen, adding an addition to accommodate your growing family, or upgrading your outdoor space, there are many factors to consider before breaking ground on your project. Most importantly, you’ll need to determine how your home renovation will impact your insurance coverage.

Here are three common renovations that could impact your insurance.

1. Building a New Addition

Whether you’re thinking of expanding your living room, finishing the basement, or building a new garage, any new addition to your home will likely increase its replacement value (and, in turn, your insurance coverage). Before building a new addition, contact your insurance provider to see how your proposed renovation will impact your current coverage.

2. Adding a Pool

Adding a pool to your home can increase its value and offer an incentive to would-be buyers. However, pools also increase the risk of water damage to your property and subject you to new liability. Check with your insurance broker to see whether your existing policy covers a pool and if you’ll need to increase your liability coverage. You may also want to inquire about what steps you must take to ensure your pool is safe, such as adding a fence with a locked gate around the perimeter.

3. Renovating the Kitchen

Kitchen upgrades are a great way to increase the value of your home and your insurance coverage, especially if you add new countertops, appliances, or flooring. If your contractor upgrades the plumbing or electrical wiring as part of the renovation, ask your broker if you qualify for a discount, or if your coverage needs to be adjusted. Kitchen upgrades can reduce the chances of water and fire damage, so there may be an opportunity to reduce your premium.

Learn more about home improvement projects that can increase your home’s value on the Royal LePage Blog, at blog.royallepage.ca.