When you’re planning a home renovation—whether it’s a kitchen remodel, a new deck, or a full basement finish—there’s more to think about than just designs and contractors. One often-overlooked detail? Your homeowners insurance.
Renovations can increase the value of your home, introduce new risks, or change how your property is used—all of which may affect your insurance coverage. As a Colorado homeowner, staying ahead of these changes is key to ensuring your home and financial investment remain fully protected.
How Home Renovations Affect Your Homeowners Insurance
- Increased Home Value = Increased Replacement Cost
Upgrades like hardwood flooring, high-end appliances, or finished basements may raise the replacement cost of your home. That means your current dwelling coverage may no longer be enough to fully rebuild after a major loss, such as a fire. If your renovation increases the value of your home, your policy should reflect that. - Liability Risks May Change
Adding a swimming pool, hot tub, or trampoline? These features can increase your liability exposure. You may need to increase your personal liability coverage or consider adding an umbrella policy for extra protection. - Renovation Worksite Risks
During construction, your home may be more vulnerable to theft, vandalism, or accidents. Depending on the scale of your renovation, a builder’s risk policy or endorsement may be advisable, especially if you’re not living in the home during the renovation period. - Contractor Coverage Matters
Always ensure your contractor carries their own liability insurance and workers’ compensation. If they don’t—and an accident occurs—you could be held financially responsible.
Renovation Projects That Often Require a Policy Update
- Kitchen or bath remodels
- Finished basements or attic conversions
- Room additions or ADUs (Accessory Dwelling Units)
- Decks, patios, or outdoor kitchens
- Solar panel installations
- Roof replacements or upgrades
Special Considerations for Colorado Homeowners
Colorado’s unique climate and geography—from wildfire-prone zones to heavy snow regions—mean insurance carriers may have specific requirements for homes undergoing major changes. If your remodel includes fire mitigation upgrades (like Class A roofing or defensible space), you might even qualify for discounts on your premium.
Likewise, installing energy-efficient systems or impact-resistant roofing may benefit both your home’s sustainability and your insurance costs.
What You Should Do Before You Renovate
- Talk to your insurance advisor before work begins.
They can help you assess how your coverage may need to change and ensure you’re protected during and after the project. - Keep documentation.
Save receipts, contracts, and photos before and after the renovation. This helps update your policy accurately and may support any future claims. - Review your dwelling limit.
Make sure your policy’s dwelling coverage is enough to rebuild the new and improved version of your home.
Final Thoughts
Your home is one of your biggest investments—and renovations are a smart way to add comfort and value. But don’t let insurance be an afterthought. A quick check-in with your insurance advisor can ensure your home, upgrades, and peace of mind are all covered.
At Conexus Insurance Partners, we help Colorado homeowners stay ahead of changes with personalized advice and coverage reviews. Thinking about a renovation? Let’s talk about how to keep your policy in sync with your plans.
