Spring and summer are the seasons when many homeowners roll up their sleeves and dive into renovation projects. Whether it's upgrading a kitchen, finishing a basement, or adding a backyard deck, these improvements can add significant value to your home. But here’s something many homeowners overlook: how those renovations impact your insurance coverage.

As an insurance agent, I’ve seen it time and again—people put time, money, and energy into improving their homes, only to find out later that their policy no longer fully covers the value of their updated space. Let’s walk through how certain projects can affect your coverage, and how to make sure you’re protected every step of the way.

Why Home Improvements Affect Insurance

When you make improvements to your home, you're increasing its value. That’s a great thing for resale—but it also means your insurance policy might need to catch up. If your home is underinsured, you could be left footing the bill in the event of a fire, storm, or other disaster, such as flooding. (I know flood insurance can be different…so please edit as needed)

Let’s say you remodel your kitchen with high-end finishes and appliances, spending $40,000. If your insurance policy still reflects the old kitchen’s value, you won’t receive enough compensation to rebuild what you had—potentially setting you back thousands of dollars.

Projects That Could Impact Your Coverage

Not every home project will impact your policy, but here are a few that typically do:

Major Kitchen or Bathroom Remodels: Upgrades in materials, appliances, or layout can significantly increase your home’s replacement cost.

Room Additions or Finished Basements: Adding square footage or finishing previously unused space raises the overall value of your home.

Decks, Pools, or Outdoor Kitchens: These features add value—and in some cases, additional liability risk.

Roof Replacements or Upgrades: Some upgrades can lower your premium, especially if they make your home more storm-resistant.

What to Do Before (and After) You Renovate

1. Call Your Agent First: Before swinging that first hammer, give your insurance agent a quick call. We can help you understand what coverage you might need during and after the renovation.
   
   
2. Keep Good Records: Save receipts, contracts, and before/after photos of your improvements. These documents help us accurately assess the new value of your home.
   
   
3. Update Your Policy Immediately: Once the project is complete, don’t wait to update your policy. The longer your home is underinsured, the more risk you carry.
   
   
4. Consider Additional Coverage: For big upgrades, you might need to increase your dwelling coverage or even consider umbrella liability insurance, especially if you’ve added features like a pool.
   

Protect What You’ve Built

Your home is likely your biggest investment. When you invest in improving it, make sure your insurance keeps pace. The good news? You don’t have to figure it out alone. That’s what I’m here for.

If you’ve recently renovated—or are planning to—let’s have a conversation. Together, we’ll make sure your home improvements are protected, and your peace of mind stays intact.

Mark Reid is a local insurance agent dedicated to helping families stay covered through every stage of life and every home improvement project. Reach out anytime for a personalized review of your policy.  Call  (615) 672-5848 or stop by the office (next to Sonic) 411 TN-76, White House, TN 37188.