How to Notify Your Insurer After a Major Home Upgrade
Upgrading your home whether it’s a new kitchen, an added bedroom, or a backyard pool is a smart investment. But if you don’t notify your home insurance provider about the changes, you could end up underinsured or even face a denied claim down the road.
Your insurance policy is based on your home’s condition and value at the time you bought it. Any major renovation can affect that value, change risk factors, and impact the replacement cost. That’s why informing your insurer after a major upgrade isn’t just a good idea it’s essential.
Here’s exactly how to do it, what documents to provide, and what happens if you don’t.
Why You Need to Notify Your Insurer
Insurance isn’t static — it evolves with your home. When you make significant changes, you’re changing the cost and risks that your insurer agreed to cover. If your policy doesn’t reflect those changes, you might not be fully protected.
What’s at Risk If You Don’t Report Renovations:
- Partial or denied claim payouts due to outdated coverage limits
- Gaps in liability protection if you’ve added risk factors (e.g., a swimming pool)
- Voided policies if the insurer determines you failed to disclose material information
Bottom line: You’re legally obligated to update your insurer and it protects you to do so.
What Counts as a “Major Upgrade”?
Insurers don’t expect a call every time you change a faucet. But they do want to know about changes that significantly affect your home’s structure, value, or risk profile.
Common Renovations That Require Notification:
- Room additions or conversions (e.g., garage into bedroom)
- Kitchen or bathroom remodels with luxury fixtures
- Finished basements or attics
- New roofing, siding, or windows
- Swimming pools, hot tubs, decks, or patios
- Solar panel installations
- Detached structures like sheds or studios
- Smart home security systems (these can earn discounts!)
If you’re unsure, a good rule of thumb is this: If it adds value or liability risk, report it.
When to Notify Your Insurance Company
The best time to notify your insurer is before the renovation begins, or immediately after it’s complete. Some renovations can actually void certain coverages while construction is underway — especially if you’re adding square footage or leaving part of your home unoccupied.
Recommended Timeline:
- Before work begins: If the renovation is structural or involves extended construction, let your insurer know ahead of time. You may need a special rider or builder’s risk coverage.
- Within 30 days after completion: Once the project is done, contact your insurer to update your coverage limits and endorsements.
How to Notify Your Insurer Step-by-Step
1. Contact Your Insurance Agent or Provider
Reach out by phone or through your insurer’s app or customer portal. Ask to speak to someone in underwriting or policy changes.
2. Explain the Renovation Clearly
Describe the type of work done, where in the house, and whether any square footage was added.
Example: “We added a 400-square-foot sunroom to the back of the house and upgraded the kitchen with new cabinetry and granite countertops.”
3. Provide Documentation
Insurers may ask for documents to verify the extent and cost of the upgrade:
- Contractor invoices and receipts
- Photos before and after
- Building permits and inspection approvals
- A copy of the floor plan or blueprint, if available
4. Request a Re-Evaluation of Your Policy
Ask the insurer to reassess your home’s replacement cost and determine if your dwelling coverage needs to be adjusted. You may also want to increase liability coverage if you added high-risk features like a pool or trampoline.
5. Review Your Updated Policy
Once your policy is updated, carefully review it. Make sure the new coverage amounts reflect the changes and that you understand your premium adjustment (if any).
Will Your Premium Go Up?
It depends. If your renovation increased the cost to rebuild your home or added new liability risks, you’ll likely see a premium increase. However, some upgrades — like storm-proof windows or security systems can lead to discounts that may offset those costs.
For more details, check out: Home Renovation Projects That Can Increase Insurance Premiums
What Happens If You Skip This Step?
Failing to notify your insurer is a risky move. If disaster strikes and your policy doesn’t reflect your upgraded home:
- Your claim payout may fall short of your home’s actual replacement value
- Your insurer may deny the claim outright due to material misrepresentation
- You could be personally liable for injuries or damage not covered under outdated liability limits
It’s not worth the risk — especially after investing thousands into home improvements.
Final Tip: Consider a Policy Review After Any Big Upgrade
Even if your insurer doesn’t require it, it’s smart to do an annual review of your homeowners insurance policy. Home changes, market shifts, and inflation all affect how much coverage you need. After a renovation, that review becomes even more important.
Next up: Does Home Insurance Cover DIY Renovation Mistakes?
Not all home improvements are done by contractors and when you’re handling the work yourself, your coverage could get complicated. Learn how DIY renovations impact insurance and how to protect yourself from costly errors.
