When you take the time to improve your home, you're giving it the care and attention it needs to thrive. Major home renovations can make the home that much more livable. But home renovations aren't just a way to give yourself a more comfortable lifestyle. They're also a way to increase the value of your home. In fact, it can potentially raise the value of your home up to 25 percent. And if you're going from $200,000 to $250,000, this can push your home into a different bracket of homeowners insurance.

Contact Your Insurer Beforehand

You should contact your insurance company long before you start the renovation work. This will help you to get a better idea of how your insurance might need to change. This is the time to detail your plans, so you can get an estimated quote on new policy, that accounts for home value once you complete work.

This is also a good time to learn about the details of your insurance policy. If you're going to take on major DIY projects, this could increase the chances of an accident that could damage the home.

If you need additional coverage - to protect against anything from structural damage to bodily— injury - now is the time to address this possibility. If you're using a contractor, make sure you— know about their own liability coverage before letting them onto the property. You will want them to be able to take responsibility for any damage they might do to your home, even unintentionally.

Take Photos

You should keep track of the progress you're making on the renovations. So, take before and after pictures of the property to give your carrier a better sense of what you're doing. If you need to store your furniture in a facility or at a friend's house during the renovation, ask your carrier if these things will still have coverage during transport or offsite storage.

Your carrier is mostly interested in the value of the home, rather than the value of the renovation. As you work with them to estimate the numbers, see if you can find out about renovations that may lower the cost of insurance.

Sometimes, simple improvements in efficiency can help you save. For example, if you're making the home safer by installing smart smoke detectors or a better security system, such additions might get you a policy discount. Knowing how your home insurance works can make it easier to adjust your plans along the way, and potentially even offset rising home insurance costs.

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