Home

How do home renovations affect insurance?

Homeowners, renters, condo and landlord coverage — what it pays for and where the gaps hide.

3 minute readHome

Quick answer

Renovations usually raise your rebuild cost, and your dwelling limit needs to follow. Some upgrades also lower risk and premium — a new roof, updated electrical, repiping — while others, like a pool or an ADU, add liability exposure that should be addressed before it is finished.

What you need to know

Tell your agent before, not after

Course-of-construction coverage protects a project in progress; a standard policy may not.

Upgrades that can lower premium

Roof replacement, panel upgrades, PEX or copper repiping, and water-shutoff devices frequently earn credits.

Additions that add exposure

Pools, trampolines, ADUs, rentals, and home businesses each change the risk picture.

Common mistakes

  • Insuring the home to market value or loan balance instead of today's rebuild cost.
  • Leaving liability at the lowest available limit with no umbrella above it.
  • Assuming flood and earthquake are included — both are separate in California.
  • Never scheduling jewelry, art or other items that carry low special limits.
  • Filing small claims that cost more in renewal pricing than they paid out.

When to talk to an agent

Talk to an agent when your premium jumps, when you renovate or rent out the home, when you are told you are being non-renewed, or any time you cannot tell from the declarations page what your policy would actually pay.

Frequently asked

This article is general information, not a policy or a promise of coverage. What your policy pays depends on its specific terms, limits and exclusions. Ask us to review your actual policy before making a decision.

Still have a question this didn't answer?

Ask us directly. We'd rather explain it than have you guess.

Review My Coverage