How A Renovation Affects Your Home Insurance

Did you know that you have to report your home renovations to your insurance carrier? If you don’t, those renovations will not be covered in the event of damages. For example, if a hurricane destroys your new roof that you didn’t tell your insurer about, your roof damage will not be covered. Renovations will likely┬áraise your rates since you’ll have more expensive coverage needs, but you’ll be better off reporting them now than suffering the consequences later.

Renovations That Increase Rates

Generally, anything that increases risk either for your liability or for potential damages can increase your rates. Adding a pool is a great example because it falls into both categories. Your pool can suffer from great damages in the event of a natural disaster, and it greatly increases your accident liability risk in the event that someone drowns or is injured in your pool.

Additionally, if you build onto your existing home, you’ll need to increase your rates to match the new square footage. The same goes for kitchen and bath upgrades – chances are that when you’re upgrading, you’re buying items that are more expensive than what you had in those rooms before. Your whole home value is going to rise, meaning your potential damages will be higher, meaning you’ll need more coverage and therefore have higher rates.

Another scenario to consider is if you have valuable home office equipment or if you take your work home often. If you have company property that you take home with you to continue work, you may want to consider purchasing additional coverage for it or attempting to add it to your existing coverage. Your policy may not cover it, especially if you didn’t use that equipment at home when you first purchased your policy.

On the other hand, if you renovate by adding safety measures, you could lower your risk and receive lower rates. For example, installing a security system, storm shutters, or lockable pool gates may save you some money in the long run.


Remember, if you aren’t honest with your insurer about your home and your renovations, you won’t be covered. Be honest and get the coverage you need.

Call InsureTN to speak with an agent about updating your policy at 615-964-5250.


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