Home Renovations in Houston: How They Impact Your Insurance

Home renovations are an exciting way to enhance your living space and increase your property’s value. However, if you’re a homeowner in Houston, it’s essential to understand how these improvements can affect your home insurance. From increased home value to new liability risks and potential premium discounts, renovations can have a significant impact on your insurance policy.

How Home Renovations Impact Insurance

Here’s a closer look at the key factors to consider:

• Increased home value—Renovations such as adding a new room, upgrading your kitchen or installing high-end appliances can increase your home’s market value. This increase means your insurance policy needs to reflect the higher replacement cost. Failing to update your coverage could leave you underinsured in the event of a loss.
• Liability risks—Certain renovations, like adding a swimming pool or a deck, can introduce new liability risks. Pools, for instance, are considered “attractive nuisances” and can significantly increase your liability exposure. Your insurer may require you to increase your liability coverage or even purchase an umbrella policy to help ensure adequate protection.
• Safety upgrades—On the positive side, some renovations can lead to lower insurance premiums. Enhancing your home with a security system, upgrading your roof or adding storm shutters can significantly increase its safety and reduce the risk of damage. These improvements often lead to insurance discounts, as they lower the chances of needing to file a claim.

Communication With Your Insurer

It’s essential to keep your insurance provider informed about any significant renovations. This communication can help ensure that your policy accurately reflects the current state of your home and that you have the necessary coverage. Notifying your insurer about upgrades can also help you take advantage of any potential discounts.

Learn More

Home renovations in Houston can have a substantial impact on your insurance policy. By understanding these effects and communicating with your insurer, you can ensure that your home remains adequately protected while enjoying the benefits of your upgrades. For insurance near you, contact Devco Insurance Services.

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.