Renovating your home is an exciting journey—it’s a chance to add value, improve comfort, and refresh the space you call your own. While the aesthetics and functionality of your upgrades are often the primary focus, it’s worth noting that your home insurance provider is also paying close attention to the changes. Insurance companies assess newly renovated properties using specific criteria to determine risks, adjust coverage, and even revise your premiums. Understanding what insurers look for can help you ensure your renovation boosts your insurance benefits while safeguarding your property.

1. Compliance with Building Codes and Regulations

Insurers place a high priority on safety and legality. Renovations that comply with local building codes reduce the likelihood of structural issues, accidents, or claims down the line. For instance, if you upgrade your electrical system, adherence to current standards ensures it’s less prone to fire hazards, making it a positive change in the eyes of your insurer.
What to Do: Before starting any renovation, obtain the necessary permits and confirm compliance with regional regulations. Keep a file documenting approvals, inspections, and certificates. These records not only protect you legally but also offer reassurance to your insurer during property assessments.

2. High-Quality Craftsmanship

The quality of workmanship involved in your renovation plays a significant role in how insurers perceive your property. Poorly executed upgrades—such as sloppy roofing or improperly installed plumbing—can lead to recurring issues, increasing the risk of future claims. On the flip side, high-quality craftsmanship signals durability and reliability, creating a more favorable profile for your home.
What to Do: Hire licensed professionals with proven track records and prioritize durable, high-quality materials in every aspect of your renovation. Retain all receipts and documentation showcasing the credentials of your contractors. Insurers are more likely to trust renovations backed by professional expertise and quality assurance.

3. Structural Changes and Additions

Structural changes and additions are among the most impactful renovations you can make. Whether you’re adding an extra room, altering the layout, or building a deck, these upgrades increase both the value of your property and the associated risks. For example, a new deck might elevate your home’s appeal, but insurers will account for the increased liability from potential injuries or damages.
What to Do: It’s crucial to notify your insurance provider about significant structural changes. Provide detailed descriptions, including the size, materials, and purpose of the additions, so they can adjust your coverage accordingly. Comprehensive coverage ensures your new upgrades are fully protected in case of unforeseen events.

4. Safety and Security Features

Renovations that include safety and security enhancements are a major plus in the eyes of insurers. Features like fire-resistant roofing, storm shutters, smart security systems, and motion-sensor lighting demonstrate a proactive approach to risk management. These upgrades reduce the likelihood of damage or theft, making your home safer and less likely to generate claims.
What to Do: Highlight safety-focused improvements when communicating with your insurer. Many providers offer discounts for homes equipped with advanced safety features. It’s worth exploring which upgrades can earn you the most savings.

5. Impact on Home Value

One of the most apparent effects of renovations is their impact on your home’s market value. From upscale kitchen remodels to stylish bathroom upgrades, every improvement adds to your property’s worth. Insurers adjust premiums based on market value, so an increase in value will likely result in higher premiums. However, this adjustment ensures your property is adequately covered.
What to Do: Share an updated valuation of your home with your insurer after completing renovations. A valuation might also make you eligible for better terms or policies that align with your upgraded home.

6. Risky Upgrades

While many renovations enhance safety and comfort, certain features carry higher risks. Pools, trampolines, fireplaces, and hot tubs are great for fun and relaxation, but they also increase liability concerns. Insurers scrutinize these additions, often requiring extra coverage or raising premiums to account for the elevated risks.
What to Do: Research the implications of adding high-risk features and discuss them with your insurance provider beforehand. They can offer recommendations on mitigating risks and suggest adjustments to your policy to keep liability concerns in check.
A Renovation Plan That Insurers Love
The secret to pleasing your insurance provider lies in thoughtful planning and transparent communication. By focusing on compliance, craftsmanship, and safety, your renovations can positively influence your home’s risk profile and coverage terms. Be proactive in updating your policy to reflect these changes—this ensures your investment is protected and aligns with your insurer’s expectations.
Additional Tips:

• Document Everything: Photos, receipts, permits, and contractor agreements should all be neatly organized. These records are essential for proving the scope and quality of your renovations.
• Schedule a Post-Renovation Assessment: Invite your insurer to reassess your property after completing major upgrades. This gives them an accurate picture of your improved home.
• Ask About Discounts: Certain upgrades, such as energy-efficient systems or fire-resistant materials, might qualify for premium reductions. Always check what benefits your provider offers for safety enhancements.

Wrap-Up: Renovate Smart, Insure Smarter
Renovating your home is more than just an aesthetic transformation—it’s an opportunity to strengthen your insurance position and protect your investment. By focusing on key factors like compliance, quality, safety, and risk management, you can ensure your upgraded property earns the approval of your insurer. So, plan wisely, keep your provider informed, and enjoy the peace of mind that comes with knowing your newly renovated home is secure.