Home Renovation? Here's When to Notify Your Insurance Agent

Planning a home renovation can be exciting, from expanding your kitchen to adding a backyard pool or finishing the basement. But while you're choosing paint colors and interviewing contractors, there's one more item you shouldn’t overlook: notifying your insurance agent.

Many homeowners don’t realize that certain renovations can change your home’s replacement cost, risk profile, and coverage needs. Failing to notify your insurer could leave you underinsured or worse, with a denied claim.

When Should You Notify Your Insurance Agent?

The general rule is simple: If the renovation changes the value or use of your home, increases liability risk, or involves structural work, notify your insurance agent before work begins.

Common examples include:

• Building an addition or expanding square footage
• Finishing a basement or attic
• Installing a swimming pool or hot tub
• Adding a new roof, high-end appliances, or smart home systems
• Constructing a deck or detached structure (like a shed or guest house)

These changes could increase your home's replacement cost, meaning your existing coverage might fall short in the event of a total loss.

What Happens If You Don't Notify Your Agent?

Let’s say you add a $60,000 gourmet kitchen with top-of-the-line appliances and marble countertops. If you don’t update your policy and experience a fire, your insurer may only reimburse you based on your previous kitchen’s value, leaving you thousands of dollars short.

Or, imagine you install a swimming pool but don’t add extra liability coverage. If a neighbor’s child gets injured while using the pool, you might not have enough protection to cover the resulting medical bills or legal fees.

According to the Insurance Information Institute, nearly 60% of U.S. homes are underinsured by an average of 20%, often because of unreported improvements.

Keep Your Coverage in Sync with Your Home

Before breaking ground on your next home project, make a quick call to your insurance agent. They can help evaluate how your renovation impacts your coverage and ensure you're properly protected. A five-minute conversation today could save you from thousands in uncovered losses tomorrow.

After all, your home is likely your biggest investment, and protecting it starts with keeping your insurance up to date.