Do You Need to Update Your Homeowners Policy if You Do Renovations? 

Renovating your home is a great way to improve comfort, increase property value and customize your space. However, many Texas homeowners may not realize that upgrades can also affect their homeowners insurance. At McDermett Insurance Agency, we encourage you to review and, if needed, update your policy as part of your renovation plans.

Why Renovations May Affect Your Homeowners Insurance

Remodeling or upgrading your home, such as a kitchen overhaul, adding a new room or installing a pool often increases your property’s value. Standard homeowners insurance policies are based on your home’s current features and replacement cost. After significant changes, your existing coverage might not be enough to fully cover your investment if a loss occurs.

Key Reasons to Review Your Policy After Renovations

Renovations may change your insurance needs in several ways, such as:

• Increased replacement cost: Upgrades like new flooring, appliances or additions may raise the cost to rebuild your home after a covered event.
• New risks: Features such as swimming pools or home offices can introduce new liabilities or require additional coverage.
• Compliance with lender requirements: If you have a mortgage, your lender may require you to maintain adequate coverage for your home’s updated value.
• Potential discounts: Some improvements, like a new roof or security system, may qualify you for policy discounts.

How Our Team Can Help Texas Homeowners

We help homeowners keep insurance aligned with renovations. Our team can review your policy for potential gaps, advise on updates, adjust coverage limits to reflect your home’s current value and identify opportunities for possible savings. Contact McDermett Insurance Agency today for a free quote or to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.