How to help protect your new home addition

Adding more space to your home can be exciting. Maybe you’re building a new bedroom, expanding your kitchen, or adding a garage or shed to your property. Whatever your plans, a home addition can change more than your square footage—it can also affect your home insurance needs.

Before construction begins, it’s a good idea to review your homeowners insurance with your American Family Insurance agent. That way, you can better understand whether your current coverage still fits your home and whether you may need additional protection during the project.

Why a home addition can affect your insurance

When you add to your home, you may also increase its value and the cost to repair or rebuild it. If your policy limits haven’t been updated, your current coverage may no longer reflect your home’s new replacement cost.

That’s why it’s smart to review your policy any time you make structural changes to your home. An annual personal insurance review is also a helpful way to keep your coverage in step with major updates and life changes.

Does home insurance cover home additions?

Your existing homeowners insurance may not fully protect your renovation project while work is underway. In some cases, you may need dwelling under renovation coverage to help protect your home and the addition project during construction.

This added protection may help with certain risks connected to renovations, such as:

• Stolen building materials
• Certain water-related damage, including hydrostatic water pressure damage
• Other covered losses that may occur during the project

Because coverages, terms, and availability can vary, talk with your American Family agent before your project starts to understand what protection may be appropriate for your situation.

How to insure your home addition project

If you’re planning an addition, here are a few key steps to take before construction begins:

1. Review your homeowners insurance

Talk with your agent about your current policy limits and whether your planned addition could change your coverage needs.

2. Ask about renovation-related coverage

If your project involves structural work, ask whether dwelling under renovation coverage may be needed during construction.

3. Check your contractor’s credentials

If you hire someone else to do the project, be sure to review their:

• Licenses
• Permits
• Insurance coverage

This can help you confirm they meet local requirements before work begins.

4. Revisit your coverage after the project is complete

Once your addition is finished, your home’s value and replacement cost may have changed. Updating your policy can help keep your coverage aligned with your home’s current value and features.

Insuring manufactured or mobile home additions

Manufactured and mobile homes have different construction characteristics than traditional site-built homes, but they still need insurance protection.

If you’re planning an addition to your manufactured or mobile home, talk with your American Family agent before construction begins. It’s important to review your existing manufactured and mobile home insurance and check to see if any additional coverage may be needed while renovation work is in progress.

If your project includes a new detached structure, such as a garage, shed or fence, ask your agent about other structures coverage as well. That can help you understand whether those structures would be covered if they’re damaged by a covered loss.

Is it cheaper to build up or build out?

Many homeowners picture an addition as building outward, such as adding a room to the side of the house. But if you have limited yard space, building upward may also be an option.

So which is more affordable? The answer depends on your property, your local building requirements, and the scope of the work.

Before deciding, be sure to review:

• Local zoning laws
• Height restrictions
• Neighborhood or municipal building rules
• Permit requirements

No matter which option you choose, careful planning can help you manage costs and avoid surprises. Taking time to compare options, understand local rules, and choose qualified professionals can go a long way.

Help ensure your project gets off to a good start

A home addition is a big investment in your space and your future. Before work begins, connect with your American Family agent to review your current homeowners insurance and discuss whether your renovation could affect your coverage needs. Reviewing your policy before construction starts can help you move forward with greater confidence.

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.