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The Benefits of Having a Home Improvement Insurance Policy and How to Get the Best Coverage

Before remodeling your home, notify your home insurance company since certain improvements change the value of your home. A remodel could affect your homeowner's policy’s coverage limits and may need to be adjusted. Depending on how extensive the renovations are, or if your home is vacant, you might need additional insurance coverage.

Understanding the Benefits of Having a Home Improvement Insurance Plan

Home renovations may affect your home insurance in several ways. Upgrades, renovations, or additions may increase your home's value and necessitate more coverage and change the cost of your policy. For example, upgrading to a metal or tile roof may result in a higher replacement cost which could increase your premium.

What Are the Different Types of Home Improvement Insurance Policies?

Here you will learn more about how different types of home renovations can affect your homeowner's insurance coverage.

HVAC Systems

If your HVAC system breaks down due to normal wear and tear, it generally won't be covered by your home insurance policy. However, your homeowner's policy may cover fire damage or damage from a tree falling on your home.

If you plan to modify your HVAC system with a major upgrade, such as new ductwork, it's best to let your home insurance company know. You might qualify for a home update discount. You shouldn't need to update your dwelling coverage unless you're also changing your type of HVAC system (for example, moving from an oil-forced-air furnace to a gas-forced-air furnace).

Air conditioner replacement

Air conditioners may be eligible for a replacement if they're damaged or destroyed by a covered loss, such as fire or hail. Your coverage can depend on the type of AC system in your home. Central air systems are part of your home's structure and therefore fall under dwelling coverage. If you have window air conditioner units, they may fall under your personal property coverage. Learn more about how home insurance covers HVAC and air conditioning units.

Attics and basements

With attic and basement renovations, primary concerns may be adding insulation and extending HVAC and electrical systems. Like with any major remodel, you should notify your home insurer to determine if you need to update your dwelling coverage. They may require photos and invoices to make the appropriate adjustments. Learn more about homeowners insurance coverage for basements.

If you have a basement, consider water backup coverage to help cover damage to your basement or the latest renovation in case water discharges from a sump or backs up through sewers or drains.

Hot tubs and swimming pools

Homeowners' insurance may cover swimming pools or hot tub damage (usually under your dwelling, personal property, or other structures coverage), as long as a covered loss causes the damage.

If installing a new swimming pool, the Insurance Information Institute recommends raising your home insurance liability limits to $300,000 – $500,000 or more. A separate umbrella policy can also provide protection in an accident or disaster.

Deck replacements

Your homeowner's insurance dwelling coverage may cover deck replacements under if a covered peril necessitates the replacement. Regardless of your reason for replacing your deck, talk to your insurance company about updating your dwelling limit after the renovation. Adding or replacing a deck can boost your home's value but will require more funds to rebuild if damaged. Keep receipts for labor and materials, note the material types and square footage, and take plenty of photos to help your insurer calculate how much additional coverage you need.


Your policy might cover landscaping, which may help pay to remove damaged trees and replace plants and shrubs if they're damaged by a listed peril. If you plan to make significant improvements to your home's land, talk to your insurer about what might be covered. Insurance companies may limit landscaping coverage to a percentage of your home's dwelling coverage. Learn more about how home insurance may cover landscaping.

Detached garages, sheds, and driveways

Secondary structures such as sheds and detached garages fall under your home insurance policy's other structures coverage. While your insurance won't cover normal wear and tear, it may cover damage caused by a covered loss such as a storm.

If you add a new garage or shed to your property, your insurer might use home replacement cost estimates to calculate how much coverage you'll need. Provide details about the anticipated size, materials, and amenities like electricity or heating. The “other structures” portion of your insurance policy covers most driveways. Learn more about driveway damage and home insurance.

Roof replacement

Your home insurer will only pay for a roof replacement if a covered loss causes the damage. Keep in mind that replacing your roof after decades of wear and tear isn't covered by insurance. Check your policy's dwelling coverage to find out more.

When updating your home insurance policy due to a new roof, your premium may decrease. A new roof offers better protection against inclement weather, reducing the chance that you'll need to file a claim related to water leaks. Keep the invoices from your qualified roofing professional and take photos to share with your insurer. Learn more about how home insurance covers roof damage.

How to Choose the Right Home Improvement Insurance Plan for Your Needs

Choosing the right home improvement insurance policy is an important decision that requires careful consideration. It is essential to compare different policies by coverages and premiums offered to find the best one for your needs. Peterson Insurance Group is ready and able to do the work for you.

Progressive Insurance provides a variety of home improvement insurance policies, each with its own unique features and benefits. In this article, we will discuss how to choose the right home improvement insurance plan from Progressive Insurance for your needs. We will also provide tips on how to compare different policies in terms of coverages and premiums offered.

How to Save Money on Your Home Improvement Insurance Plan?

Home improvement insurance is an important part of protecting your home from any damage or loss. It can be expensive, but there are ways to save money on your home improvement insurance plan. By taking advantage of discounts for improvements in safety features or energy efficiency upgrades, you can lower the cost of your coverage and still get the protection you need. You can also shop around to find the best rates and compare different policies to make sure you're getting the best deal possible. With a little bit of research and planning, you can save money on your home improvement insurance plan and keep your home safe.

Not sure how to begin researching the best insurance policy? Contact us at Peterson Insurance Group. We'll get you headed in the right direction.


Peterson Insurance Group is a family-owned and operated independent insurance agency representing multiple companies located in Weaverville, NC. Founded in 2001, the company is owned by Eirene Peterson-Burnette, the successor to the founder, Stom Peterson. Together, with her team, Peterson Insurance provides exceptional, personal service guiding customers through the maze of insurance options. Visit us at 1 South Main Street Extension, Weaverville, NC 28787 or call 828-645-8777.

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