Home Upgrades That Can Increase Your Insurance Rates

Onyx Insurance Brokers

A home is many people’s most valuable possession, no wonder most people are very certain to make it fully covered. This means paying the necessary premiums for the right types of insurance protection.

Many consumers assume once they’ve purchased coverage, they’re all set. Sometimes, however, home improvement projects can increase rates, others can decrease rates and many require updating your coverage. Failing to think about your home insurance when doing renovations could leave you underinsured.

Therefore, it is important to assess your coverage when completing a renovation project. You should know what you can expect if you plan to proceed with one of the more popular home renovations. In particular, here are home upgrades that could increase your home insurance rates:

Putting a swimming pool

In certain locations, adding a pool to your home can increase its value and offer an incentive to would-be buyers. However, a pool is considered an “attractive nuisance” and significantly increases your liability risk, which will likely increase your homeowners’ insurance premium.

A standard homeowners insurance policy usually includes liability coverage, which is designed to help cover medical costs for a person injured on your property and legal expenses if you are sued. However, an insurance agent may recommend that a pool owner opts for higher liability coverage than what is standard. Homeowners might also consider purchasing an umbrella insurance policy, which provides additional liability coverage for greater financial protection.

Your insurance carrier may also require a locking fence around the pool and/or a locking safety cover to go over the water when the pool is not in use. If the pool has a diving board or slide, it will likely be considered a greater potential hazard by your insurer, who may decide to not provide coverage or charge a much higher premium.

Adding space for a home business 

Working remotely has become more common during the pandemic, so adding an office could increase your home’s value for remote workers and business owners. However, it could also increase your homeowners’ insurance rates or require you to purchase an endorsement to increase coverage for business-related assets and equipment, or a separate home business policy that provides protection against crime and worker injuries.

Additionally, homeowners insurance companies might not cover liability related to the business. You may need to bolster your existing policy or purchase an additional business policy. This is particularly true if your business is the type that creates heavier foot traffic in your home, such as piano lessons or private yoga sessions.

Regardless of the scope of your business, you should let your agent know if you have any business risk in your home, to make sure that you are covered properly.

Putting an addition to your home

Sometimes a home needs to be changed to accommodate an expanding family. That can mean modifying a floor plan and adding more livable square footage, like finishing a basement or attic. In other instances, a new addition may be in order. Expanding your space with new square footage will most likely increase your home insurance premium as you will need a higher level of dwelling coverage.

You might need more post-renovation insurance even if the added space is not inside your house. Adding a large finished deck could increase the value of your home, for example, and consequently, require an insurance reassessment. You may also need to consider other types of coverage for the newly built areas of your home. For example, a finished basement with new carpet, drywall and insulation may need sewer backup coverage.

Ultimately, if you expand your usable square footage indoors or outside, your insurance coverage will probably need to be altered to account for the value of the new space. With floor plan renovations, it’s best to talk to your insurance agent or insurance company to discuss if you need to alter your policy.

Luckily, ONYX Insurance Brokers can help you understand how to make sure your home insurance fits your changing needs if you take on a home renovation project. We are willing to assist you anytime. Contact or email us now!


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