Home Updates Equal Insurance Updates

For many people, taking out a mortgage loan is their first time being exposed to homeowner’s insurance. They might sign a policy for the coverage required by the mortgage lender at the time and not think any more about it. But over the course of the years or even months, a lot of changes can be made to a house. Things may be done to update or remodel, or to just make it feel more like home. A lot of those things can change the value of your home. They can also change your insurance needs. The home you own now isn’t always the home you bought, and changes to your insurance policy should reflect the changes to your home as well.

There are many home improvement projects that can affect your insurance policy.


Putting a new roof on your home can actually lower your insurance premiums. A new roof is much less likely to fail, causing extensive damage to the inside of your home, and therefore is less of a liability.

Additions & Upgrades

Things like building an addition, adding a swimming pool, or upgrading your kitchen or bathroom can boost your insurance premium to cover the new and/or upgraded space.

Basically, anything that affects your home’s value will affect your insurance as well. If you don’t update your insurance policy, you could be underinsured. Updating your insurance policy may cause a difference in your premium, but that difference is small compared to what you could be paying out of pocket for damages to an underinsured home.

Most people don’t fully understand their home insurance policies when they sign them, let alone when they need updating. You should always have your agent fully explain your policy and all of your unique coverages. Policy reviews should happen at the time of purchase, as well as throughout the years as you make changes to your home. Agents can also help evaluate valuable belongings you may have acquired over time, such as sports equipment, firearms, jewelry and collectibles, which can also affect your homeowner’s insurance policy. (For tips on how to take a home inventory, see here.)

If you’re thinking about making renovations to your home, need to account for renovations that were already made or simply need a policy review, speak to your AAA Insurance Agent today, and maximize your savings.