Homeowner’s insurance premiums and renovations are related. A homeowner’s insurance premium is the regular payment made to an insurance company to maintain coverage for a home and its contents. Factors such as the home’s value, location, potential dangers affect this cost. Other factors that affect the cost are the coverage limits, which is the maximum amount the company is willing to pay you for a claim. Any discounts or additional coverage options applied could also cause an increase or decrease to the cost.

Nonetheless, understanding your homeowner’s insurance premium is important to make sure that you have the right coverage for your property while managing your overall insurance costs effectively.

If you are planning on renovating your home, it would be wise to research if the renovations will increase or decease your insurance.   Here are some examples of how these renovation can affect your premium.

Renovations or Additions That Can Increase Premiums:

1. Swimming Pools – Adding a pool increases liability risks, often raising premiums.
2. Home Additions – Expanding your home increases its replacement cost  resulting in higher premiums.
3. High-End Upgrades – Installing luxury materials or appliances may require increased coverage for replacement value.
4. Finished Basement – While adding more interior space to occupy in the home, basements are more likely to be exposed to water damage, increasing premiums.
5. Home Offices – Upgrading for a business use may require special coverage, adding to costs.

Renovations or Additions That Can Decrease Premiums:

1. Security Systems – Installing monitored alarms, cameras, or smart locks can reduce premiums by lowering the risk of theft.
2. Fire-Resistant Materials – Replacing roofing or siding with fire-resistant materials can result in discounts.
3. Impact-Resistant Windows – Upgrading to storm-proof windows may lower premiums, especially in storm-prone areas.
4. Electrical Updates – Replacing old wiring reduces the risk of electrical fires, often leading to lower rates.
5. Plumbing Upgrades – Modernizing pipes can decrease premiums by reducing the risk of leaks or water damage.

Looking for more homeowner tips? Check back weekly or contact me and let’s chat!  Mobile: 732-995-5609 / NJHomesbyRoslyn.com