Renovations to your home could mean renovations to your insurance policy

You spend time and money fixing up your house to make it a haven for your family — remodeling the kitchen, finishing the basement, getting everything exactly how you want it.

So it’s important to make sure that investment is protected. If you suffered a loss, you typically would receive replacement cost value from your insurance company: enough to rebuild your home with similar materials. But if you don’t update your insurance policy with any major renovations or upgrades you’ve made, those additions may not be covered.

Here are some renovations that could affect your insurance policy.

Upgrading the materials

Custom cabinets, hardwood floors, whirlpool tub — if you switch from standard builder’s grade materials to higher-end materials, this could change your replacement cost value.

Adding livable space

Whether it’s a sunroom, an expanded master suite, or a finished basement, extra square footage needs to be covered. Additionally, make sure to talk to your agent if you've added a pool or additional shed to your property.

Making key updates

Some house renovations could result in possible credits, meaning a lower insurance premium. For example, if you put on a new roof, you could be eligible for a discount from your insurance company.

Talk to your agent

Contact your insurance agent to make sure you have enough protection on your policy to include any recent remodeling. Tell them the extent and cost of the renovations, and any added square footage. Your agent will use this information to determine the new replacement cost value and make sure you are covered.

For a major renovation, it’s best to consult your agent before you start the project so you know how it will affect your policy. If you’re unsure whether the updates will change your insurance coverage, ask your agent.