7 Home Renovations That Could Alter Your Insurance Premiums

Dana+Jeff Luxury Homes


Home renovations are the hallmark of a homeowner wanting to give their space a facelift or improve its functionality. But while you're eagerly watching those home makeover shows and planning your next big project, have you ever paused to wonder how those upgrades might affect your insurance premiums? If not, don't fret; many homeowners find themselves in the same boat. This comprehensive guide will delve deep into seven specific home improvements that might just change your insurance equation.

The Link Between Home Renovations and Insurance

Before jumping to the list, let's set the stage by understanding why renovations might affect your insurance.

Why Do Renovations Affect Insurance?

Simply put, any change to your home that alters its value, risk profile, or both can result in an insurance premium change. A high-end kitchen might increase the home's value, while a new swimming pool could increase accident risk. Insurers take these factors into account when determining your premium.

7 Renovations That Impact Your Insurance

1. Roof Upgrades

The roof is more than just a hat for your house. It's the first line of defense against nature's wrath. Upgrading or replacing it, especially with storm-resistant materials, can lower your premiums. Why? A sturdy roof means fewer claims arising from storm damage.

2. Home Office Additions

With more folks working from home than ever, it's no surprise home offices are on the rise. But beware: adding one might increase your premium. Why? You're adding expensive equipment, and there's a higher risk of someone getting injured in this new workspace.

3. Luxury Upgrades

That marble countertop and heated bathroom floor might elevate your living experience, but they also hike up your home's value. A more valuable home often leads to a heftier insurance premium because it costs more to replace or repair those luxury additions.

4. Swimming Pools and Trampolines

Ah, the allure of a backyard pool or a fun trampoline! However, with fun comes responsibility. These additions increase the risk of injuries, which is why your insurer might give your premium a significant bump.

5. Advanced Security Systems

Now, here's a silver lining. Installing advanced security systems or surveillance can decrease your premiums. Safe homes mean fewer burglary-related claims, making you a less risky client for your insurer.

6. Structural Additions

Thinking of adding an extra room or a garage? That's great, but remember, more space often means more value, leading to a possible premium hike. On the plus side, new structures often use modern, safer building techniques, which might help balance out any potential increase.

7. Upgraded Utilities

Outdated electrical or plumbing systems are a risk. Upgrading them not only makes your home safer but can also lead to insurance savings. It's a win-win.


Mitigating The Insurance Impact

Not thrilled about a potential premium hike? Here's some good news: there are ways to mitigate it.

Shop Around

Yes, it sounds clichéd, but it’s effective. Different insurance providers have different risk assessments. Don't hesitate to shop around and find the best deal.

Bundle It Up

Many insurance companies offer discounts for bundling multiple policies. If you're considering a renovation, maybe it's time to revisit all your insurance needs.

Ask About Discounts

Some renovations, like security system installations, might qualify for discounts. Always keep your insurer in the loop and inquire about potential savings.


Home renovations are an exciting venture, breathing new life into your living space. But, as the saying goes, "Look before you leap." Understand the potential insurance implications of your renovations, and you'll be better equipped to make informed decisions. Remember, a well-informed homeowner is a savvy homeowner. So, arm yourself with this knowledge, plan your renovation with confidence, and ensure that your dream project remains a dream and doesn’t turn into a financial nightmare. 🏡💡🔨👷‍♂️👍


We offer the highest level of expertise and service with integrity. Jeff Biebuyck & Dana Olmes are Luxury Homes Specialists in Calabasas with a particular expertise in representing residential estate properties throughout the West San Fernando Valley, Conejo Valley, Malibu and Greater Los Angeles area. As consummate professionals, Jeff Biebuyck & Dana Olmes provide their clients with the highest level of service to reach their unique real estate goals.

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