How They Affect Your Homeowners Premium

Making updates or upgrades to your home?  You should be aware of how these changes can affect your insurance premiums.  Here are common upgrades and their impact:

Square Footage

If your project adds square footage to your home, then your home insurance needs to be updated.  This change will prevent your home insurance from covering less than the market value.


Adding a deck, a mother-in law unit, or adding a room, these upgrades will change your policy.  Before starting on a project, give the agency a call to find out how these changes will affect your policy.

Building Materials

High-quality building materials are more expensive to cover than standard materials.  They can raise your home’s replacement value.  Keep your receipts and give them to the agency as back up to  help calculate premium costs.

Household Items

New appliances, fixtures or other new items will definitely add to the value of your home.  How you wish to insure these items will affect your premium increase.  You can decide on actual cash value or replacement costs.  We can explain the difference and explain the benefits of replacement and how your premiums will be affected.

Liability Coverage

Home upgrades like pools or hot tubs bring risk and you will want to make sure you have the right liability coverage in case of injury.


Putting on a new roof is a great way to save on premiums.  

Plumbing & Electrical

A home upgrade is an excellent time to update electrical wiring and plumbing systems.  Old plumbing and electrical are prime cause of home insurance claims.  Upgrading these systems, in addition to reducing risk, can reduce your premiums by as much as 10%.

Want more information, go the National Association of Insurance Commissioners Consumer Home Insurance Guide for consumers.

Source:  Today’s Homeowner, NAIC Home Guide