Home improvements often increase the value of your property. As a result, your current homeowners insurance policy may not provide enough coverage for your upgraded home. For example, adding square footage, installing high-end appliances or finishing a basement can all raise your home’s replacement cost. If your policy is not updated, you may be underinsured in the event of a loss.

Home Upgrades That May Affect Insurance

Some projects can change your home’s risk profile and replacement value, resulting in adjustments to your insurance coverage or premium. Examples include:

• Remodeling a kitchen or bathroom
• Making room additions or garage conversions
• Replacing a roof
• Installing a swimming pool or deck
• Upgrading electrical, plumbing or HVAC systems

Premium Changes and Eligibility

Some improvements, such as a new roof or updated wiring, can reduce your risk of damage and may lower your insurance premium. Others, like adding a pool or trampoline, could increase your liability risk and result in higher premiums or new coverage requirements. In some cases, certain upgrades may affect your eligibility for specific policies or discounts.

The Importance of Notifying Your Agent

It is crucial to inform your insurance agent about any significant home improvements before or after the work is completed. Our team can review your policy, recommend coverage adjustments and help you address new risks. Keeping your insurance up to date can help avoid coverage gaps and surprises when you file a claim.

Get Personalized Guidance Today

If you are planning home improvements in Texas, reach out to My One Stop Insurance Agency. Our agents are available to discuss your plans and review your homeowners insurance. Contact us today to get started.

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.