Owning a home in Sacramento is an investment worth protecting. And while home insurance might not be something you think about every day, having the right coverage is crucial when the unexpected happens. From wildfires in nearby areas to flood risks and home upgrades, making sure your policy keeps up with your life can save you from some costly surprises.
So, when should you take a closer look at your coverage? The short answer: anytime there’s a big change in your home or your circumstances.
Whether you’re remodeling, adding safety features, or adjusting for local risks, updating your policy ensures you’re covered when it matters most. Let’s dive into the details.
Why Would You Need to Update Your Home Insurance?
As your home evolves, so should your insurance. Major renovations like expanding your kitchen or adding a second story increase your home’s value, which means you may need more coverage to match the new replacement costs. Additionally, rising local building costs could leave you underinsured if your current policy doesn’t reflect the true cost of rebuilding.
New high-value purchases, such as art collections or advanced entertainment systems, can also exceed policy limits, leaving gaps in coverage. On the other hand, safety upgrades like security systems, monitored alarms, or impact-resistant windows may qualify you for discounts. Regularly reviewing your policy ensures you’re adequately protected while potentially saving you money.
Top Home Renovations That Could Affect Your Coverage
Not all home projects are created equal—especially when it comes to insurance. Here are some that might require a policy adjustment:
Kitchen Remodel
A kitchen upgrade can drastically impact your home’s value. If you’ve added high-end appliances, custom cabinetry, or expensive countertops like quartz or marble, your replacement cost has likely increased. More luxurious finishes mean higher repair and replacement costs, so it’s essential to update your policy to reflect these changes. Otherwise, if a fire or flood damages your newly remodeled kitchen, you might not receive enough from your insurance to fully restore it.
Roof Replacement
A new roof is one of the most significant upgrades a homeowner can make, and it often affects insurance rates. Certain roofing materials, like metal or impact-resistant shingles, can lower premiums because they offer better protection against severe weather. However, if you’ve opted for high-end roofing materials such as slate or tile, your home’s overall value increases, and you may need additional coverage to reflect the higher replacement cost.
Adding a Pool
Pools are a great addition for family fun, but they also come with increased liability risks. Many insurers require higher liability coverage when a pool is added to a property due to the potential for accidents. Features like pool fencing, locked gates, and safety covers can help reduce risks and possibly lower the added insurance costs. Still, if you’re planning on installing a pool, it’s crucial to update your policy to ensure proper protection.
Finishing a Basement
Transforming a basement into a livable space adds square footage and increases your home’s value. Whether it becomes a guest suite, home theater, or personal gym, your insurer needs to know about the changes. Finished basements also introduce new risks, such as water damage or mold growth, so additional coverage for sump pumps and water backup protection may be necessary.
Home Renovations That Could LOWER Your Insurance Premiums
Good news—some upgrades might actually save you money! Here’s what could help:
Upgraded Electrical Systems
If your home still has outdated wiring, such as knob-and-tube or aluminum wiring, your insurance premiums might be higher due to fire risks. Upgrading to modern electrical systems with circuit breakers and grounded outlets can significantly reduce these risks and lower your premiums.
Impact or Fire-Resistant Roofing
To avoid being prone to damage from fires or storms, impact-resistant roofing materials such as Class 4 asphalt shingles or metal roofing can protect against hail, wind, and debris. Many insurers offer discounts for these durable materials because they reduce the likelihood of expensive claims from storm damage.
Smart Security Systems
Installing a professionally monitored security system can reduce the risk of burglary, making your home safer and more attractive to insurance companies. Many insurers provide discounts for features like video surveillance, smart locks, and motion sensors.
Plumbing Upgrades
Old, corroded pipes can lead to leaks and costly water damage claims. Replacing outdated plumbing with modern materials like PEX or copper can prevent these issues and possibly lower your insurance premiums.
Sacramento-Specific Insurance Considerations
Living in Sacramento comes with unique home insurance concerns. Here’s what to keep in mind:
Wildfire Insurance
While the city of Sacramento itself isn’t in a high-risk wildfire zone, areas near Folsom, El Dorado Hills, and the foothills may require additional wildfire coverage. Standard policies may not fully protect against fire damage, so it’s worth checking if you need extra coverage.
Flood Insurance
Sacramento’s location near the Sacramento and American Rivers means some areas are prone to flooding, especially during heavy winter rains. Homeowners in designated flood zones may be required to carry additional flood insurance.
Pool Insurance
Pools are a staple of California living, and many Sacramento homes have them. Be sure to check that your liability coverage is sufficient in case of accidents.
Earthquake Insurance
While Sacramento isn’t as earthquake-prone as the Bay Area, it’s still in California, where quakes are always a possibility. Most standard policies don’t include earthquake coverage, so consider adding it if you want extra protection.
Your home is more than just a place to live, it’s where memories are made—and your investment deserves the best protection possible. Staying on top of your home insurance ensures that no matter what changes come your way, you’re financially secure.
The Sherri Patterson Team is here to help our Sacramento homeowners navigate the ever-changing real estate and insurance landscape. If you’re thinking about a renovation, buying a home, or just want to make sure you have the right coverage, reach out to us today.
Let’s make sure your home—and your peace of mind—are well protected!
