Why You Should Update Your Home Insurance Policy After Major Renovations

Your home is a significant investment that requires suitable financial protection to match. Over the years, you may be able to renovate your home and add additional value to the property. In such cases, updating your homeowners insurance to account for any major changes is critical.

Consider the following situations where home insurance adjustments may be necessary:

Installing a New Addition

Creating a new addition to your home can revitalize a property and tremendously increase its value. While that sounds positive, your existing property coverage may be insufficient. Your home insurance should be able to pay for a complete replacement of your home. As your home becomes more valuable with a new addition, you should update your coverage limits accordingly. Failing to do so could mean being underinsured and, at worst, having a claim denied later.

Renovating a Basement

Finishing a basement can add much-needed living space to a home; this typically involves adding flooring or carpeting, drywall, new light fixtures and other steps. Beyond updating your property coverage limits, as you would with a new addition, you may also need to consider additional insurance, such as flood insurance or sewer backup coverage. Water intrusion is typically not covered by standard homeowners insurance and can wreak catastrophic damage to a finished basement.

Adding a Pool

Installing a pool can provide welcome relief on a hot day; however, it can also expose you to liability concerns. Swimming pools are considered “attractive nuisances,” meaning they increase the likelihood of someone being injured on your property. As such, you should consider updating your homeowners liability limits when you install a pool in case a guest is injured and sues.

How Do I Know When I Need to Adjust My Insurance?

It may be unclear when a renovation necessitates insurance updates. That’s why the team at Sanchez Insurance is here for you. We can help discuss your renovation plans and recommend coverage to keep you and your investment financially protected. Contact us today to start a conversation with no obligation.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.