Planning a home renovation? Be sure to let your insurer know.

Core Insights - Homeowners should notify their insurance provider about significant renovations to avoid financial risks and ensure proper coverage during and after construction [1][5][13] Group 1: Home Improvements and Insurance Notification - Home improvement projects vary in scale, with larger projects, particularly those costing $50,000 or more, warranting notification to the insurance company [3][13] - Factors influencing the need for notification include the value added by renovations and whether the home will be vacant during construction [6][8] Group 2: Risks of Not Informing Insurers - Failure to notify insurers about renovations can lead to claim denials, particularly if the home’s risk profile changes without the insurer's knowledge [5][6] - The risk of being underinsured in a total loss situation is significant if renovations are not reported, as the payout may not cover the actual loss [6][10] Group 3: Impact on Insurance Costs - Renovations can lead to increased insurance costs if they raise the home's replacement value, such as adding square footage or high-value finishes [8][15] - Conversely, updates that enhance safety, like modernizing plumbing or electrical systems, may reduce insurance costs [9][10] Group 4: Additional Insurance Considerations - Depending on the renovation's scope, a separate builder's risk policy may be necessary to cover the home and materials during construction [10][11] - It is advisable for homeowners to discuss potential projects with their insurance representative to understand the implications on insurance rates [15]