Dreaming of a stunning new kitchen, a spa-like bathroom, or a finished basement retreat? Home renovations are an exciting opportunity to improve your living space and increase the value of your property. But as you plan your project, it’s important not to forget a critical element: your homeowners insurance.

Renovation projects, whether large or small, can affect your insurance coverage in several ways. From increasing the replacement value of your home to raising liability risks, it’s essential to consider how your policy may need to change.

 

Property Value Increases Mean Coverage Should Too

 

Renovations often increase your home’s value. A modernized kitchen with custom cabinets or a newly added bedroom contributes to a higher rebuilding cost in the event of a total loss. If your insurance coverage was based on your home’s pre-renovation value, it may no longer be sufficient.

Many homeowners assume their policy automatically adjusts for improvements, but that’s not always the case. If you’ve added square footage or upgraded building materials, your dwelling coverage might need an update. Contact your insurance broker at Tooher-Ferraris Insurance Group to reassess your policy and help ensure your coverage accurately reflects your home’s current value.

 

Consider Your Personal Property Coverage

 

Home renovations often include new purchases such as appliances, furniture, and electronics. These additions increase the overall value of your personal belongings. Standard homeowners policies typically cover personal property as a percentage of your total dwelling coverage, but that may not be enough if you’ve made significant investments.

To protect your new purchases, review your personal property limits. For high-value items like art, antiques, or custom installations, you may need a scheduled personal property endorsement to ensure full protection.

 

Address Liability Risks During Construction

 

Renovations bring people, tools, and potential hazards onto your property. Whether it’s a contractor slipping on a wet floor or a delivery person injured by construction debris, you could be held liable for accidents that occur during the project.

Your existing homeowners policy includes liability coverage, but you should confirm the limits are sufficient for the added risk. It’s also important to verify that your contractors carry their own liability and workers compensation insurance. If they don’t, you could be on the hook for injuries or damage they cause.

Before work begins, talk with your insurance broker to determine whether your liability coverage should be increased during the renovation period.

 

Always Notify Your Insurance Provider

 

Perhaps the most important step is notifying your insurance company before you begin any substantial renovation. Whether it’s a major kitchen remodel or an addition to your home, your insurer needs to know about the scope of work to accurately assess your risk and recommend appropriate adjustments.

Failing to inform your insurance provider could result in denied claims or gaps in coverage. It’s better to have these conversations early so you can make changes proactively rather than after an issue arises.

 

Renovate with Confidence

 

At Tooher-Ferraris Insurance Group, we believe in helping you protect what matters most. Our team of licensed insurance brokers will review your current policy, recommend any necessary updates, and provide expert guidance so you can move forward with confidence.

Contact us today to schedule a coverage review and make sure your dream renovation doesn’t turn into an insurance nightmare.