A home renovation project can improve your property and make you fall back in love with your home. However, improvements can also affect the safety and value of your home, both of which can affect your home insurance rates. If you’re planning a major remodeling project, below are a few reasons to talk to an insurance agent before work begins.

What Is Liability Coverage?

Even relatively simple projects can be dangerous. If a worker is injured on your property in an accident, you could be held liable if the contractor doesn’t have their own liability insurance. Before hiring a company, ask for verification that they’re fully covered.

If you’re tackling the project with the help of family or friends, check the liability limits in your policy. Otherwise, you may be subject to a lawsuit if someone who doesn't live on the property is injured while working on the project. Before starting, you can add liability coverage to the policy to ensure that you're protected in case there are any injuries during the project. However, this will raise your overall home insurance premium.

What Are Some Projects That Can Raise Insurance Rates?

Any improvement that increases the chances someone will be injured on your property will likely result in higher insurance premiums. For instance, swimming pools carry the risk of a visitor slipping or drowning on your property.

Substantially boosting the value of your home may also affect your insurance needs. If a new finished basement increases the property value by $30,000, your existing policy may not provide enough coverage to fully rebuild after a disaster. After a renovation that makes your home more attractive to potential buyers, it's important to ask an agent whether you should adjust your home insurance policy to ensure adequate coverage.

What Are Some Renovations That Can Lower Premiums?

Some home improvements can reduce the risk of damage if a disaster occurs, so your insurance rates might also come down. For instance, fire-resistant roofing materials can save the house if a fire breaks out. Major plumbing upgrades and other improvements can also lower the risk of expensive complications, so notify your insurer as soon as you finish important structural renovations to see if you qualify for any discounts.

If you're planning a home renovation, contact the professionals at Cundiff & Company Insurance Inc. to see how your insurance may be affected. For over 40 years, they have helped homeowners throughout Somerset, KY, protect their most valuable investments. As an independent agency, they write policies from some of the industry’s leading carriers, giving them an extensive selection of products to choose from. Visit their website to learn more about their home insurance services, or call (606) 679-8379 for a free, no-obligation quote today.