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Six Home Renovations that Can Affect Your Insurance

By January 19, 2020April 2nd, 2020Home Insurance

Home renovations can definitely affect your homeowners insurance. Some home renovations will change the amount of coverage you need, while others could even help you qualify for a discount. Here are six common scenarios that could affect your insurance:

Building a New Addition

When you expand and improve your home, you could likely increase its replacement value. This is the cost to repair or rebuild your home. Some additions that could increase your replacement value include: adding a second-story bedroom, expanding the living room or building a new garage.

After building a new addition, or making updates or other improvements, you may need to increase the amount of your coverage due to the increased value of your home and the fact that the cost to rebuild it will likely have increased. Most insurance companies require your Coverage A or dwelling coverage limit be at least 80 percent of the replacement value of your home.  We are happy to help recalculate your home value to determine whether you’ll need more coverage because of the addition or improvement.

Building a Pool

If you’re looking to add a pool, you will want to contact us to review coverage for changes to your property’s value, as well as any increase in risk. When people are swimming and running around the pool, there’s the chance for an accident. If someone gets hurt, they could try to hold you responsible for damages. This can apply even if the accident isn’t your fault.

When you contact us, we will verify that you have enough liability coverage in case you need it to help pay damages to injured persons and provide for a defense if you are sued as a result of their injuries.

Let’s also consider the steps you should take to keep your pool safe so you can avoid accidents. Adding a fence with a lock is a smart move. You could also add lights with motion sensors or a pool alarm to discourage trespassers. Consider skipping the diving board, because this increases the chance of an accident and your insurance cost.

Adding a Deck

A new deck is another improvement that can add value but also risk, especially if the deck is attached to a second story or higher. Please let us know if you have added a deck so we can adjust your policy as necessary.

Renovating the Kitchen

Upgrading the kitchen can significantly increase the value of your home, especially if you switch to higher-quality counter tops, appliances and new flooring. We urge you to contact us if you are planning a kitchen renovation.

If your contractor upgrades the plumbing or electrical wiring as part of the renovation, you may quality for a discount.  These upgrades can reduce the chance of flooding water damage and fire, so may be eligible for a discount that can help to reduce your premium.

Finishing the Basement

Finishing your basement can also increase the value of your home. That means, yet again, you may need more homeowners coverage. Flooding can be a concern, especially for the lowest floor in your house. It is important to note that most homeowners insurance policies do not cover damage caused by floods. We are happy to review your coverage and look to see if there are steps you can take to help prevent future damage, like installing a sump pump.

Redoing the Roof

Before you redo your roof, check with us because this could also qualify for a discount. Some companies offer a discount when you reinforce the roof or use stronger roofing materials that are wind, hail and leak-resistant.  At the same time, redoing the roof could increase your property value, which means you might need more coverage.

The best rule of thumb is to contact us if you are considering making home renovations. We will help you get the most out of your discounts while making sure your home is adequately insured.


The information in this article was obtained from various sources, including Travelers insurance, and is not all-inclusive regarding the subject matter. This content is offered for educational purposes only. 

The Turner Agency, Inc. is a local Trusted Choice® independent insurance agency located in Greenville, South Carolina and in Clemson, South Carolina. Serving the Upstate of South Carolina and beyond since 1962, we offer a variety of personal and business coverage choices and can customize an insurance plan to meet your specialized needs for homes, automobiles, recreational vehicles, secondary homes, and your business. Contact The Turner Agency today.