Do Home Improvements Increase Homeowners Insurance Coverage Needs?

Home improvement projects like a kitchen remodel, finished basement or new deck can change your home’s value and insurance needs. Many Indiana residents don’t realize this until they file a claim. McQuiston Insurance Agency can help explain how these updates may affect your homeowners insurance coverage before construction begins.

How Home Improvements Impact Your Insurance

Upgrades and renovations can increase your home’s replacement cost, the amount needed to rebuild your home if it were damaged or destroyed. This means your current policy may no longer fully cover your home’s value. Projects that can increase necessary coverage limits include:

• Kitchen or bathroom remodels
• Room additions or finished basements
• Pool or deck installations
• Roofing, window or siding upgrades
• Security or smart home systems

Still, while certain upgrades may increase your home’s replacement cost and require higher coverage limits, some improvements, such as installing a metal roof or deadbolt locks, can also help you save on your premiums.

When to Notify Your Insurer

Contact your insurer before starting major renovations. They can review your policy and determine whether coverage adjustments are needed. Adding square footage or high-value features can require higher dwelling coverage. Without updates, you may be underinsured. A finished basement not reflected in your policy, for example, can leave gaps when you file a claim.

What Types of Improvements May Require Updates?

Not all upgrades require changes to be made to your policy, but you may need to do so if your project:

• Significantly increases your home’s value
• Adds living space or amenities (e.g., a swimming pool)
• Involves expensive materials or custom work
• Changes your home’s risk profile (e.g., a wood stove or trampoline)

We Can Help Indiana Homeowners

Contact McQuiston Insurance Agency today to review your policy and update your coverage to reflect your home’s new value.

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.