How Home Renovations Impact Your Insurance: What You Need to Know

Planning a home renovation? It’s an exciting time—new spaces, fresh designs, and upgrades that can increase your home’s value and comfort. But amidst all the planning, one crucial aspect that often gets overlooked is how renovations can impact your home insurance policy. Whether it’s adding a new room, upgrading a kitchen, or building a deck, these changes can influence your coverage and premiums.

In this blog, we’ll explore the key reasons why renovations affect your home insurance, what you need to do, and why keeping your insurer informed is essential.

Why Do Renovations Affect Your Insurance?

Home renovations change both the value and risk profile of your property. Here’s how:

1. Increase in Property Value

• Major renovations, like adding an extra room or upgrading a kitchen, can significantly increase the market value of your home.
• If your insurance coverage isn’t adjusted, you might end up underinsured. This means that in the event of damage, your payout may not cover the full cost of repairs or rebuilding.

2. Higher Risk for Damages or Accidents

• Some renovations may increase the likelihood of claims. For instance, adding a pool increases the risk of accidents, while a kitchen remodel involving electrical work could raise fire hazards.
• Your insurer may need to adjust your premium to reflect these changes or require additional safety measures.

3. Temporary Risks During Construction

• Renovations come with risks, such as structural damage or theft of materials and tools. If your home becomes uninhabitable due to work, you may also need temporary accommodation coverage.
• Some policies exclude damages that occur during construction, so checking with your insurer beforehand ensures you’re protected.

Why It’s Important to Notify Your Insurer

Failing to notify your insurer about renovations can lead to serious issues, such as:

1. Policy Voids or Claim Denials
   • If your insurer finds out you didn’t disclose significant renovations, they might refuse to pay for damages.
2. Inaccurate Coverage
   • Your existing policy may not be enough to rebuild or repair your upgraded property after an incident.
3. Missed Premium Adjustments
   • While some renovations may raise premiums, others—like installing security systems—could lower them. Staying in touch with your insurer helps you optimize your coverage.

How ARMA Insurance Brokers Can Help

Navigating insurance changes during home renovations can be overwhelming. That’s where ARMA Insurance Brokers come in. We specialize in Home and Contents Insurance and can guide you through the process to ensure your coverage aligns with your property’s new value and risks.

Our team will:

• Review your current policy to identify any gaps.
• Help you find the best coverage options for your renovation needs.
• Ensure your premium reflects the changes fairly.

Tips for Staying Covered During Renovations

1. Notify Your Insurer Early: As soon as you plan the renovation, reach out to your broker to discuss potential policy adjustments.
2. Get the Right Endorsements: If the renovation adds specific risks (like a pool or solar panels), ask about endorsements or additional riders.
3. Document the Upgrades: Keep receipts and photos of all renovations for future reference.
4. Confirm Temporary Coverage: If you need to vacate your home during construction, make sure your policy covers temporary living expenses.

Final Thoughts

Home renovations are an investment in your property’s future—but they also come with new responsibilities. Making sure your insurance policy keeps up with these changes will give you peace of mind and prevent costly surprises down the road.

For personalized advice and comprehensive Home and Contents Insurance, contact ARMA Insurance Brokers today. We’ll ensure your coverage grows with your home, so you can focus on enjoying your beautifully renovated space.