Common Home Renovations and their effect on homeowners’ insurance:

• Building a new addition: You may need to increase your coverage because the value of repairing or rebuilding your home has increased.
• Adding a pool: You may need to increase coverage for changes to your property’s value and the increased risk of someone getting hurt. Ask your agent about pool safety tips like a fence with a lock, lights and motion sensors, or a pool alarm. Consider skipping the diving board.
• Adding a deck: If the deck is attached to a second story or higher, your policy may need to be adjusted.
• Renovating the kitchen: This may significantly increase the value of your home and the need to increase your coverage.  
• Finishing the basement: This may increase the value of your home and the need to increase coverage. Ask your agent whether you should add water backup/sump pump coverage.
• Redoing the roof: This may increase the value of your home and the need to increase coverage. However, insurance companies typically prefer newer roofs. Notify your agent if you get a new roof so they can notify the insurance company.

Does my existing homeowner’s insurance protect me during the remodel?

• What does my current policy cover? Homeowners insurance policies typically cover your home and personal property from fire, windstorm, hail, or lightning. The dwelling coverage helps repair or rebuild your home if it is damaged or destroyed by a covered loss.
• How does the renovation affect my policy? Ask your agent to explain what (if anything) is covered during the renovation, confirm that the contractor carries the necessary insurance, and be aware that after remodeling, you will likely need to increase your dwelling coverage to match the new value of your home.
• Do I need other or additional coverage? In addition to your home dwelling coverage, you will want to review your liability coverage because you may increase the number of people on your property. 

Tips for hiring a contractor:

• Get multiple estimates
• Hire local, licensed contractors when possible
• Check their past work
• Do not rush into making the decision
• Check their insurance and bonding
• Get everything in writing
• Don’t pay upfront
• Anticipate delays
• Keep all documents in one place