5 Renovations That Affect Your Home Insurance

​Like many other homeowners, renovating your home may be on your bucket list if it's already outdated. You may also need to renovate your home to improve or make its facilities look and serve you better. 

Whatever your purpose is, keep in mind that renovating your home can increase or decrease its insurance rate. For your information, below are some of the renovations that affect your home insurance's coverage: 

Renovations that Increase Home Insurance Rates 
You have to balance out the amount of coverage value and your home's insurance rate. Failure to do so may leave you unprepared to shoulder more outgoing expenses than you can handle. 

1. Building a Swimming Pool 
   The building of a swimming pool at home is an investment. Because of this, you need to spend a huge amount of money on it. There are many safety risks associated with people using your pool. These risks ultimately fall on your liability as an owner. 
   
   Your insurance coverage may not cover these liabilities for you. So, the risk of spending more and getting less money is at stake when you build a swimming pool in your home. 
   
   
2. Getting an Office for a Home Workspace 
   Working at home has become the new normal since the onset of the pandemic. You'll have to shoulder many associated additional fees when you get an office for a home workspace. Since it would normally be only you who runs your home-based business, the risk of it not taking off is at stake. 
   
   If your business fails to take off, you have to shoulder the downside of incurring more financial losses. 
   
   
3. Expansion of Your Home's Space 
   If you have sufficient funds, this renovation is ideal for yourself and your entire family. You only modify minimal portions of your home when you expand its space. So, the home insurance rate increase associated with this renovation may be minimal. 
   
   

Renovations That Decrease Home Insurance Rates 
Useful renovations that decrease home insurance rates are favorable for homeowners. The values of home insurance rates fluctuate as time goes by. 

So, keep in mind that these renovations may increase home insurance rates shortly. 

1. Renovation or Replacement of Your Roof 
   Your roof and other appliances are not internally integrated into the structures of your home. So, renovating or replacing them decreases your home insurance rate. 
   
   
2. Replacement of Your Old Wiring and Plumbing 
   Again, your wiring and plumbing systems and tools are also not directly part of the internal structures of your home. So, the same concept regarding the decrease in the home insurance rate applies. 

Conclusion 
Most people do renovations when the benefits outweigh the downsides on their end. Your willingness to renovate your home may depend on your changing lifestyle and needs. 

At McClain Matthews Insurance, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (317) 298-7500. You can also request a free quote by CLICKING HERE. Any coverage discussed is not guaranteed. Please contact us today to go over your policy to ensure your needs are met! We are here and happy to help.