The Impact of Home Improvements on Insurance Costs and Why You Should Update Your Policy After Renovation

Home improvements can transform your living space, boost your property value and make your home more comfortable. However, many South Carolina homeowners may not realize that renovations can also affect their home insurance. Failing to inform your carrier about your plans and make appropriate adjustments to your policy could leave you underinsured and facing unexpected financial losses.

How Home Improvements Affect Insurance Premiums

Whether it’s a kitchen upgrade, bathroom remodel or adding a new room, renovating your home typically increases the value of your property. This means your current insurance policy may no longer provide enough coverage to fully protect your investment and interests. However, conversely, certain enhancements might reduce your perceived risk levels.

Specifically, you should consider the following common ways home improvements can influence your insurance:

• Increased replacement cost needs—Upgrades like new flooring, appliances or additions can raise the cost to rebuild your home after a loss, which may lead to higher premiums.
• Enhanced safety features—Installing a new roof, security system or updated wiring can sometimes lower your insurance costs by reducing risk or certain incidents.
• Added liabilities—Features such as swimming pools or decks may increase your liability exposure, which could affect your coverage needs.

Why Policy Updates Matter After Renovation

Failing to update your homeowners insurance after a renovation can leave you underinsured. If you experience a loss and your policy doesn’t reflect your home’s new value or features, you may not receive enough compensation to repair or replace what’s been improved. Updating your policy can provide the following assurances:

• Your coverage matches your home’s current value and features.
• You’re financially protected against new risks introduced by renovations.
• You comply with your mortgage lender’s insurance requirements.

We’re Here to Help

Contact Super Insurance Discounts today to discuss your remodeling or renovation plans and discuss necessary updates to your homeowners coverage.

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.