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Have you ever watched a home renovation show and thought, "I could do that," or "that would look great in my home?" Before you grab a sledgehammer or hire a contractor, there's one important step that renovation shows almost never mention: talking to your local independent insurance agent.

A renovation can change more than the look and value of your home. Depending on the project, it could also affect your insurance needs. Whether you're finishing a basement, replacing your roof or building a backyard retreat, it's worth making sure your coverage keeps up with your plans.

Here are a few of the insurance questions home renovation shows rarely answer.

Should I call my insurance agent before I start my renovation?

Yes! Most people assume they should call their local independent insurance agent after the renovation is finished. In reality, the conversation is often most valuable before the project begins.

Planning ahead gives your local independent agent a chance to make sure your coverage keeps pace with your renovation. Construction materials at your home are generally covered by your homeowners policy, but if you're making major improvements, your policy limit may need to be updated to reflect the value being added to your home. Your local independent agent can help determine whether your coverage should be adjusted before work begins.

It's also a good time to discuss the materials you plan to use. For example, some roofing materials may qualify for discounts, and some siding materials may affect your premium differently. Talking through your plans before buying materials may help you make more informed decisions.

Which home renovations can affect my insurance?

Not all renovations affect your homeowners insurance the same way. A good rule of thumb is to ask yourself whether you're adding value to your home that isn't already accounted for.

Projects that commonly have an impact on homeowners insurance include:

• Adding square footage or a room addition
• Finishing an unfinished basement
• Replacing your roof
• Replacing or updating siding
• Installing higher-end materials or custom finishes
• Adding a fence, pergola, gazebo, shed, pool or hot tub

 

Even if you aren't adding square footage, some upgrades can still affect your coverage. For example, remodeling a kitchen or bathroom with higher-quality materials may increase the cost to rebuild your home after a covered loss.

Not sure whether your renovation could affect your insurance? Your local independent agent can help determine whether your project requires any updates to your policy.

What if I do the work myself?

Whether you tackle the project yourself or hire a contractor doesn't automatically change your homeowners insurance. However, it does matter that the work is done correctly.

Damage caused by faulty construction or improper installation may not be covered by your homeowners insurance. If you're planning a DIY project, make sure you understand what's involved before getting started. If you're hiring a contractor, take the time to choose someone you trust to do quality work.

How can I help protect my renovation after it's finished?

Home renovation shows end with the big reveal, but real life continues long after the cameras stop rolling. If part of your newly renovated home is damaged in a covered loss years later, finding an exact match for flooring, cabinets, countertops, siding or roofing may not always be possible.

Imagine you install new flooring throughout your main living area. Years later, a dishwasher leaks and damages part of the floor. If that flooring is no longer available, replacing only the damaged section could leave your home with mismatched flooring.

If preserving the look of your renovation is important to you, ask your local independent agent about optional matching coverages, like the Interior Matching Protection coverage or the Undamaged Siding or Roofing coverage, when matching materials are no longer available.

 

Home renovation shows make it easy to focus on the exciting parts of a project, from demolition day to the big reveal. But before you start your own renovation, take time to think beyond the finished result.

A conversation with your local independent agent can help you understand how your plans may affect your homeowners insurance, identify any coverage updates that may be needed and help protect the investment you're making in your home.

 

Disclaimer: This article is not expert advice. The analysis of coverage is in general terms and is superseded in all respects by the Insuring Agreements, Endorsements, Exclusions, Terms and Conditions of the Policy. Some of the coverage mentioned in this material may not be applicable in all states or may have to be modified to conform to applicable state law. Some coverages may have been eliminated or modified since the publishing of this material. Discounts may not be available in all states. Limitations and conditions may apply. Premiums will be based on benefits chosen. Please check with your local Independent Auto-Owners Insurance Agent for details.

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