How Home Renovations Can Impact Your Insurance Premiums

Thinking about updating your kitchen, adding a new room or making other improvements to your Massachusetts home? Renovations can be an exciting way to enhance your living space and increase your property’s value. However, it’s important to understand how these changes may affect your homeowners insurance premiums and coverage.

How Renovations Influence Insurance Costs

When you renovate your home, you’re often increasing its value or changing its structure. This can impact your insurance in several ways:

• Increased replacement costs. Upgrades like a new kitchen or finished basement can raise the cost to rebuild your home after a loss. Your insurance premium may increase to reflect this higher replacement value.
• Expanded living space. Adding square footage (such as a new bedroom or sunroom) means there’s more to insure. Your policy limits may need to be adjusted, which can affect your premium.
• Upgraded features. Installing high-end appliances, custom cabinetry or luxury finishes can also increase your home’s value and the cost to insure it.
• Safety improvements. Some renovations, like updating electrical systems or installing a new roof, may reduce your risk of certain claims. In some cases, these improvements can help lower your premium.

Coverage Updates and Local Area Considerations

Massachusetts homeowners should be aware that local building codes and weather risks, such as coastal storms, can influence insurance requirements. After a renovation, it’s essential to review your policy to make sure that you have adequate coverage for your updated home. Failing to update your insurance could leave you underinsured if you need to file a claim.

Why Consult Our Team Before You Remodel

At Cape Wide Insurance, we help Massachusetts homeowners navigate the insurance implications of home renovations. Our team can review your current policy and help you understand how your project may impact your premiums. By consulting us before you start your remodel, you can avoid surprises and ensure your investment is fully covered.

Planning a renovation? Contact us today to discuss your homeowners insurance needs and get personalized guidance for your next project.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.