Spring is a popular time for homeowners to start home improvement projects. Enhancing your house can increase its appeal and boost its value. However, before you begin, it’s important to be aware that your upgrades and renovations may impact your homeowners insurance rate.

Improvements That Raise Your Insurance

Increasing Square Footage
A larger home poses a greater risk for accidents, necessitating adjustments to your homeowners insurance to cover the additional risk. Before starting any project that increases the size of your home, inform your insurer. You may need additional coverage for yourself and any workers during the project.

Installing a Pool
While a pool is an attractive home renovation, it can be dangerous if extra precaution is not taken to protect users. Therefore, it’s one of the renovations that can raise your insurance premium. Homeowners with a pool are required to take out a personal liability cover for medical and legal expenses in case third parties are injured from using the pool.

Adding a Commercial Space
Running a business from your home can increase your insurance costs to cover the electronics, inventory, and vehicles used in the business. Additionally, you may need to take out a personal liability policy to cover yourself against any trips, falls, or other injuries to customers who may be visiting your new business.

Improvements That Decrease Your Insurance

Upgrading Your Roof
An old or leaky roof will cause your regular maintenance costs to skyrocket and may also increase your homeowners insurance. Replacing your roof with fire- or wind-resistant materials, or features such as hurricane straps, can reduce your insurance premiums by as much as 10%.

Installing Water Shut-Off Devices
Water damage can cost thousands to repair, and much of this cost has to be handled by your insurance. Installing devices that prompt your water system to shut off when they detect damage can save you up to 3% in insurance premiums, in addition to helping you prevent water damage.

Before starting a home renovation, contact your homeowners insurance provider to see how the project will affect your premiums. It’s best to enter into a renovation with all the information on hand.