How home improvements can affect your homeowners insurance

Making updates to your home can be exciting and inspiring. Whether you’re dreaming about a new kitchen, replacing an aging roof, or adding smart home features, home improvements can change more than the look of your home. They can also affect your homeowners insurance.

Some renovations may increase the cost of repairing or rebuilding your home. Others may reduce certain risks and could help lower your insurance premiums. That’s why it’s a good idea to review your coverage before and after a project.

Why home improvements matter for insurance

Your homeowners insurance should reflect your home as it is today. If a renovation increases your home’s value or replacement cost, you may need to update your policy so your coverage keeps pace with those changes.

In some cases, improvements that strengthen your home or help prevent losses may also make you eligible for savings, depending on your policy and the state you live in.

Home improvements that may affect your coverage

Here are some common upgrades that can affect your homeowners insurance.

Adding a swimming pool

A pool can create more space for fun, exercise, and time together at home. It can also increase risk, especially if someone is injured on your property.

If you’re adding a pool, you may want to review your liability coverage and ask whether an umbrella policy could make sense for your needs. You should also check local ordinances regarding fencing or other safety features and ask your agent whether your policy has specific requirements.

Building an addition

Adding square footage can change the amount of coverage your home needs. Say you’re finishing a basement, adding a bedroom, or expanding your outdoor living space. Your policy may need to be updated to reflect the increased cost of repairing or rebuilding your home.

Upgrading appliances, flooring, countertops, and finishes

High-end materials and upgraded features can raise the value of your home. If your policy isn’t updated after a remodel, your coverage may not fully reflect the cost of those improvements after a covered loss.

If your project includes premium appliances, custom cabinetry, stone countertops, or new flooring, it’s a smart time to review your policy with your American Family Insurance agent.

Replacing plumbing, electrical, windows, or a roof

Some improvements focus less on appearance and more on how your home performs. Replacing older plumbing, electrical systems, windows, or roofing materials may help reduce the chance of certain losses. These updates can also improve comfort and energy efficiency.

Depending on your policy and state, some of these improvements may qualify for a homeowners insurance discount.

Installing smart home technology

Smart home devices can add convenience and help you feel more connected to your home. Security systems, leak detection devices, and other protective technology may also help reduce risk.

Depending on your policy and state, certain smart home upgrades may qualify for a discount on your homeowners insurance.

Planning a home improvement project?

No matter what the renovation is—big or small, inside or out—it’s a good idea to give your local insurance agent a call to help make sure your coverage reflects the changes to your home and explore any potential savings opportunities.

This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance.

Discount, savings and product eligibility varies based on the way you purchase insurance, by state, property type and policy form. Discounts may not apply to all coverages on an auto or home policy. Discounts do not apply to life policies. Exclusions may apply.