Do You Need to Change Your Home Insurance Policy After a Remodel?

American homeowners spend billions each year on remodeling their homes. However, many homeowners make the unfortunate mistake of overlooking the impact that home remodeling can have on their home insurance needs. Absolute Choice Insurance connects homeowners and insurance agents with the information that they need to select the best homeowners insurance policy for their purposes. Here are some things that homeowners can consider to determine whether or not you need to change your insurance policy after a remodel.

The Best Homeowners Insurance For Your Needs Depends on What You Build During a Remodel

Understanding your post-remodel insurance needs starts with understanding the different remodeling activities that can trigger a change in insurance requirements and why. The primary factor that plays a role in changing a homeowner’s post-remodel insurance needs is what features and amenities were built and added to the home during the remodel. Here are some of the most common reasons why you may need to change your insurance policy after a remodel.

If You Built a Pool

The first reason why homeowners may need to change their home insurance policy after a remodel is if they added a pool to their home. Pools are appealing home features, especially in warm climates. However, they can also be a source of many potential dangers such as slips and falls, drowning, and more. For these reasons, pools can be a massive liability issue for homeowners, making many insurance providers wary and resulting in increased insurance premiums.

While most standard home insurance policies typically include liability coverage, it is highly recommended that homeowners opt for additional liability coverage and financial protection in the form of an umbrella insurance policy after adding a pool to their home.

If You Built a Home Office for Your Business

With remote work becoming increasingly popular, another reason why homeowners may need to change their home insurance policy after a remodel is if they added a home office during their home remodel. Home offices include an array of business assets and equipment such as desks, chairs, computers, printers, and more. While most standard home business insurance policies offer home-based business equipment coverage of up to $2,500, that amount is often not enough.

For that reason, homeowners may need to discuss with their insurance agent about the possibility of a home insurance exclusion for their property after their remodel. Homeowners can also consider purchasing an endorsement to supplement their home insurance policy with increased business asset and equipment coverage. Alternatively, homeowners may need to purchase a separate business insurance policy in addition to their home insurance.

Situations Where You Wouldn’t Need to Change Your Insurance Policy After a Remodel

As shown above, many of the remodeling situations that result in the need for a home insurance policy change involve sweeping household additions. Here are some common small changes that wouldn’t require an insurance change.

If You Performed Upgrades and Repairs

If homeowners strictly make upgrades and repairs to existing household components such as their roof and plumbing during a remodel, they do not need to make changes or additions to their home insurance. In fact, such upgrades and repairs can reduce their home insurance premiums.

If You Added New Furniture

Furniture and similar household components have no bearing on insurance needs. For that reason, if a home remodel is focused entirely on interior aesthetic pieces such as furniture and fixtures, the homeowner will not need to make any changes to their home insurance policy.

As you can see, post-remodel home insurance needs vary heavily based on the nature of the remodel in question. To determine your post-remodel home insurance needs, contact Absolute Choice Insurance today!

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