Renovating your property has some serious perks, such as creating more space or updating your amenities.

Some upgrades, such as a new roof or security system, can even reduce home insurance costs. While others — like a pool — can have the opposite effect.

Before you take on your next home improvement project, here’s what you should know about how renovations might change your premiums.

  • Swimming Pool: Pools generally fall under “other structures” in your homeowners policy. But you may need to purchase additional liability coverage to manage the increased risks that come with owning a pool.
  • Home Additions: Maximizing the livable square footage of your home by finishing the basement, adding another bedroom or enclosing your patio might raise your premiums. That’s because you may need to increase your insurance limits to account for the value these changes can add.
  • Roof Renovation: When you get a new roof, your premiums may go down simply because your roof is new. Also, you may be eligible for a premium discount if you install an impact-resistant roof because they’re less likely to be damaged by high winds and hail.
  • Security System: A home security system should decrease possible theft and damage losses from a break-in. The discount you may receive on your homeowners insurance premiums can help offset the new system’s cost.
  • Plumbing and Electrical: Replacing old plumbing and electrical systems can make your home safer and make you less likely to file a claim. As a result, your insurance premiums may go down slightly. Having a professional install a home generator that keeps your electricity on during an area-wide outage could also qualify you for a discount.

Curious about which changes to your home could increase or decrease your premiums? Get in touch with questions or to talk about your policy.