Can Home Renovations Affect Your Home Insurance?

Any changes that you make to the structure of your Richardson, TX home will affect your home insurance. Some renovations could raise the cost of your insurance premiums; others could make you eligible for home insurance discounts. By discussing home improvement plans with your Allegiance Insurance Agency agent in advance, you can get a better idea of how your projects will affect your insurance coverage so you can prepare to adjust your policy accordingly. Here are a few ways home improvements affect home insurance coverage and costs.

Reduces Insurance Premiums

Some renovations can actually reduce your insurance premium due to minimizing your risk of damage to your property. A new roof, for example, offers greater protection to the structure and interior of your home, which could qualify you for reduced insurance rates. If your renovations enhance the safety of your home, such as a new security system, new HVAC or electrical system or upgrading your plumbing, you may be eligible for discounts on your insurance coverage.

Increases Insurance Costs

Renovation projects that add livable space to your home (new bedroom, back patio, mother-in-law apartment, etc.) may increase your insurance costs as it increases the areas that need to be insured. Once you add these renovations to your policy, you may see an increase in premium costs. If you purchase new furniture or electronics for renovated areas, these items will also need insurance protection, which may increase coverage costs.

Major home renovations can also increase the value of your home, requiring that you increase your dwelling coverage to cover the new value of your property. Increasing your dwelling insurance ensures you have sufficient coverage to rebuild your home if it’s destroyed in an unforeseen disaster.  

For customized home insurance coverage to fully protect your Richardson, TX property, contact Allegiance Insurance Agency today.