How Home Renovations Can Shake Up Your Insurance

If you’ve lived in the Central Texas Hill Country for any amount of time, you’ve probably caught the renovation bug at least once. Maybe you’re adding a guest suite for when the in-laws visit (or stay too long…), finally putting in that dream pool to beat the summer heat, or upgrading your roof after yet another Texas thunderstorm puts on a light show.

Home improvements make your space more enjoyable—and often more valuable—but they can also change what you need from your home insurance. Before you pick up the sledgehammer, here’s what homeowners in Georgetown, Round Rock, Liberty Hill, Marble Falls, and everywhere in between should know.

1. Your Home’s Value Goes Up—And So Should Your Coverage

When you renovate, you’re not just adding beauty or function—you’re also increasing your home’s replacement cost. Your home insurance is designed to rebuild your home as it stands today, not as it looked before the remodel.

A few examples:

• Room additions or expansions: More square footage generally means a higher rebuild cost.
• Kitchen or bathroom upgrades: Higher-end materials = higher replacement value.
• Outdoor additions like decks or extended patios: More structure means more coverage needed.

And if you’re installing that dream pool or a trampoline for the kids? Those are often considered attractive nuisances, which may require boosting your liability limits to better protect your financial well-being.

2. New Projects Can Introduce New Risks

Some upgrades aren’t just aesthetic—they change your home’s risk profile. And insurance companies definitely care about that.

For example:

• Adding a home office for a side business: Standard home insurance typically doesn’t cover business equipment, inventory, or commercial liability. You may need an endorsement or separate business policy.
• Building a workshop or hobby studio: Expensive tools or specialized equipment might require scheduled coverage.
• Installing smart-home tech: Some devices may reduce risk and even qualify for discounts, but others may require updated documentation of your home’s systems.

Bottom line: If your home changes, your coverage should change too.

3. Some Improvements Could Earn You Discounts (Yes, Really!)

Sometimes renovations can lower your insurance costs. For example:

• Replacing an aging roof with a wind- or impact-resistant one
  Great for your policy—and your peace of mind during storm season.
• Upgrading electrical or plumbing systems
  Reduces the chance of fire or water damage, which insurance carriers love.
• Adding security devices
  Burglar alarms, smart locks, and monitored systems may help cut premiums.

And after the work is done, it’s the perfect time to have your broker (hello, Dowd Insurance Agency!) shop the market to make sure you’re getting the best combination of coverage and price.

Planning a Renovation in the Hill Country? Let’s Talk Coverage.

Here’s the truth: renovations don’t have to be stressful—but overlooking insurance can be. Whether you’re breaking ground or just dreaming up your next project, we can walk you through how your changes might impact your home insurance and help you avoid costly surprises down the road.

Dowd Insurance Agency is here to help Central Texas homeowners safeguard what they’re building—literally.

Give us a call to make sure your next renovation comes with the right protection.