Homeowners insurance is one of the key ways for property owners to protect themselves financially against unfortunate circumstances. It normally includes at least three types of coverage: dwelling, personal property, and personal liability. The first two protect the building structure and its contents against damage due to fire, storms, and vandalism, while the third pays for repair, medical, and legal costs if you or a member of your household should accidentally injure someone or damage their property. However, if you change your home—as in a room addition or a remodel—your coverage needs will change. Likewise, your rates may increase. The information below discusses how.

How Does a Remodel Affect Insurance Rates?

Home insuranceBecause dwelling coverage costs are based on the square footage of the house and the materials used to construct it, any size increase will result in higher home insurance premiums. Other improvements that increase its value will similarly raise rates. Failure to update your policy could mean that you don't receive the full value for any losses if you ever need to file a claim.

How Might Different Remodels Affect Costs?

Any room addition increases the square footage and likely results in higher rates. How much higher depends on the size of the addition and the insurer's policies. The addition of a home office might affect you in other ways, too. If you conduct a business out of your home, you may need to upgrade to a business owner's policy. Critical items like computers, printers, and other equipment you use to operate the company might not be covered under a regular home insurance policy.

Even renovations that change the value of your home could change your rates. For instance, if you remodel the kitchen and install an expensive granite countertop, marble floor, and a top-of-the-line fridge and freezer, you should discuss the upgrades with your agent to determine if you need to update your policy.


To have an experienced agent assist you in designing a homeowners policy, contact Reed Brothers Insurance, a venerable insurance agency in Lexington, KY. They have been serving customers in and around Fayette County since 1912 and have deep ties within the local community. They also offer auto, health, boat, life, and business insurance. Visit their website to submit an information request form, or call (859) 253-2728 to request a quote.