Thinking about home renovations that increase value? Whether you’re preparing to sell or simply want to enhance your living space, strategic upgrades can significantly boost your home’s appeal and market price. It’s equally important to understand how these renovations might affect your homeowners insurance—and how to stay properly covered.
Here are six smart home renovations to consider and what you should know from an insurance perspective.
1. Kitchen Remodel: Boosting Home Value and Function
The kitchen is one of the most valuable rooms in any home. Upgrading with energy-efficient appliances, modern cabinetry, and an improved layout is a proven way to increase property value.
Insurance Tip: Any updates that increase your home’s replacement cost—like custom countertops or new appliances—should be reported to your insurance provider.
2. Bathroom Upgrade: A High-ROI Home Renovation
A refreshed bathroom offers comfort and style. Swapping outdated fixtures, improving lighting, or installing a walk-in shower enhances both appeal and usability—making it a top choice among home renovations that increase value.
Insurance Tip: High-end upgrades like heated floors or a spa tub could raise your home’s value and may require additional coverage.
3. Energy-Efficient Home Improvements
Adding solar panels, replacing windows, or improving insulation can reduce utility bills and attract environmentally conscious buyers. These are not only cost-effective but also popular home improvements that increase value.
Insurance Tip: Some green improvements—like solar systems—should be added to your policy to ensure they’re fully covered in the event of damage.
4. Outdoor Living Spaces: Attractive and Functional
Enhancing your outdoor area with a patio, deck, or landscaping adds livable space and curb appeal. This type of renovation is growing in popularity among homeowners looking for ways to improve resale value.
Insurance Tip: Permanent fixtures such as built-in grills or fire pits may impact your coverage. Check with your insurer to make policy updates as needed.
5. Creating a Productive Home Office
A dedicated home office has become a must-have feature for today’s buyers. Converting a spare room or basement into a workspace can significantly improve your home’s marketability.
Insurance Tip: Running a business or storing expensive office equipment at home may require added property or liability protection. Ask your agent about available endorsements.
6. Fresh Paint and Flooring Upgrades
Simple updates like painting and new flooring can make a big difference in how your home looks and feels. Durable hardwood, luxury vinyl, or tile combined with neutral paint tones can create a fresh and modern look without a huge investment.
Insurance Tip: If you’re installing premium materials, let your insurance agent know so your policy reflects the home’s current value.
Protect Your Investment with the Right Insurance
Before diving into home renovations that increase value, talk to your insurance agent to ensure your policy is up to date. The right renovations can pay off—but only if your coverage matches your investment.
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