Home Renovation Projects and Insurance Implications

Home renovations can breathe new life into your living space, enhance functionality and boost property value. Whether adding a swimming pool, remodeling your kitchen or creating a cozy home office, these changes come with insurance considerations. From liability risks to safety measures, understanding the implications helps ensure that your home remains protected during and after the transformation.

Do I Need Extra Insurance for Home Renovation Projects?

The following are some essential steps for finding the right insurance coverage for your home renovation:

• Contact your insurer early. Before starting any renovation project, reach out to your insurance agent or company. Inform them about your planned changes to your home. They can clarify your policy’s limits and advise whether you need to adjust your coverage. Some adjustments may include the following:
  • Dwelling coverage—If your renovation significantly increases your home’s replacement cost (e.g., adding a room or upgrading the kitchen), consider raising your dwelling coverage limit. This limit reflects the cost of rebuilding your home if it were destroyed.
  • Other structures coverage—If you’re adding a fence, shed or other structures, ensure your other structures coverage is sufficient.
  • Personal property limit—If you’re buying new furniture or high-end electronics, consider raising your personal property limit to cover these items fully.
  • Liability coverage—If you’re adding an attractive nuisance, such as a swimming pool, consider increasing your personal liability coverage. These features can pose a higher risk of injury, making you a potential target for lawsuits.

Your agent can estimate how much your premium will increase based on the new coverage limits. If the price hike is significant, explore home insurance quotes from other companies.

• Avoid renovation pitfalls. Beyond coverage adjustments, discuss potential pitfalls with your agent, such as
  • Ordinance or law coverage—Consider adding this coverage. It may protect you from out-of-pocket expenses to comply with local building codes during renovations.
  • Builders risk coverage—If your project is substantial (too big to handle yourself), consider hiring a licensed and bonded contractor with builders risk coverage. This insurance can help cover expensive construction materials against theft or damage while on your property.
• Make an inventory. Create an inventory of your property before the renovation begins. Document existing items and their value. This inventory will help ensure that your personal property is adequately covered during and after the renovation.

Home Insurance in Wilmington, IL

Contact Oak Knoll Insurance today to discuss your insurance needs. We can guide you through the process and help tailor your coverage to your renovation needs.

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.