Introduction

• Renovating your residence provides it with a revitalized appearance. While you are renovating and remodeling your house, you typically consider only the various elements of your home. Nevertheless, home renovations can completely alter your house’s value. This can subsequently influence your home insurance policy. This occurs because home insurance providers determine your premium based on several aspects, one of which includes the valuation of your home and the associated risks. Therefore, if a renovation leads to an increase in your home’s value, your insurance premium may rise as well. However, not every renovation enhances your home’s value; some can potentially lower it too. Here’s how these 5 prevalent home renovations impact your home insurance coverage.

Renovations that increase home insurance rates

• When contemplating your home renovation, it’s wise to identify which renovations can elevate your home’s valuation. Below are the renovations that could boost your home insurance premiums.

1. Building a pool
   
   Long, warm summers necessitate a swimming pool in your backyard. However, having a swimming pool at your residence can create risks of injuries or drowning. This implies that despite its indulgent appeal, it amplifies your liability exposure. In the event of any accidents, individuals may hold you accountable for their injuries. Consequently, your home insurance premium will likely increase significantly. Your insurance provider will probably suggest that you acquire additional liability coverage than what is typically required. In addition, surrounding structures such as the pool deck, slides, and security fence will also require coverage in the event of any damage.
   
2. Expanding space
   
   Every household needs additional space to support a growing family. This involves adding more livable areas to your home, such as an extra room or a new bathroom. This could cause your home insurance rates to rise because there is simply more area to insure. Thus, you may need to obtain an extra insurance policy if your agent recommends it. The same applies if you’re creating outdoor areas such as a garden or lawn.
   
3. Adding office for home business
   
   Given the Covid-19 pandemic, remote work is becoming a prevalent concept. Whether it’s for a corporate job or a small business, having an office space at home is truly beneficial. In such cases, you would require home-based equipment like a desk, chairs, laptop, and shelves. Occasionally, businesses might need specialized tools like sewing machines for production to operate effectively. Therefore, if you’re converting a room into an office, your existing insurance coverage may not suffice. As a result, you will need to obtain an additional insurance policy. Here, there are three options:
   – Add an endorsement to your current homeowners’ policy to expand your existing limit and cover potential losses.
   – A business owners policy includes a distinct set of coverages that are not included in a homeowner’s insurance policy.
   – In-home Business Insurance can provide small businesses with the same level of protection that larger companies receive.
   
4. Upgrading kitchen or bath
   
   Two of the most commonly used areas of our homes are the kitchen and the bathroom. The tiles, cabinets, and faucets may all require an update after a certain period. Nevertheless, these modifications can alter the value of your home by making it more expensive than it was previously. Therefore, if you update the countertop in the kitchen or add an upgraded bathtub to your bathroom, it is highly likely to result in a change in your insurance premium. Thus, you need to notify your insurance provider about the changes you are implementing.

Renovations that decrease home insurance rates
Modifications to your home that enhance its safety can also lead to lower home insurance rates.

5. Renovating or replacing your roof
   
   Upgrading your roof not only boosts the property’s value, but it also greatly reduces your insurance premium. If you upgrade your roof to ensure it is water and wind-resistant, potential damages to your home decrease significantly. As a result, you may qualify for some appealing discounts when installing a new roof or repairing the existing one. This is especially probable if you reside in an area prone to heavy rains and hurricanes in India. You can consult with your insurer for additional information.

• Conclusio
• When renovating your home, the last consideration you have is your home insurer. However, a brief consultation with your insurance agent can assist you in effectively implementing the appropriate renovation strategies and selecting the best home insurance policy in India as well.

Disclaimer:

• The information provided above is for illustrative purposes only. For more details, please review the policy wording and prospectus before finalizing the sales.