Home improvement is everywhere. You see it on TV, in your neighbor’s yard, and all over social media. People want to make their homes look better, feel cozier, and sometimes even save money. But there’s a catch. Many popular DIY trends can actually make your home insurance more expensive. If you’re not careful, that new project could cost you more than you think. Here’s why these trends matter: insurance companies see risk where you might see style, and that risk can hit your wallet.
1. Open Floor Plans
Open floor plans are popular. People love knocking down walls to create big, airy spaces. But removing walls can weaken your home’s structure. If you don’t use a professional, you might miss hidden wiring or plumbing. Insurance companies see this as a risk. If your home is less stable, it’s more likely to be damaged in a storm or fire. That means higher premiums. Before you grab a sledgehammer, check with your insurer and a structural engineer.
2. Backyard Pools and Hot Tubs
Adding a pool or hot tub sounds fun. It’s a great way to relax or entertain friends. But pools and hot tubs are a big liability. They increase the risk of accidents, injuries, and even lawsuits. Insurance companies often raise rates for homes with pools, especially if you don’t have a fence or safety cover. Some insurers may even require extra liability coverage. If you’re thinking about a pool, factor in the long-term insurance costs.
3. Home-Based Businesses
More people are working from home or starting side businesses. Turning your garage into a workshop or your basement into an office can change your home’s risk profile. If you store inventory or see clients at home, your standard policy might not cover business-related losses. Insurers may charge more or require a separate business policy. Always tell your insurer about any business activity at home.
4. Smart Home Tech
Smart thermostats, cameras, and alarms are everywhere. Some people think these gadgets lower insurance costs. Sometimes they do, but not always. If you install devices yourself and make mistakes, you could create new risks. For example, a poorly installed smart lock could fail, making your home less secure. Insurers may not offer discounts unless you use approved devices or professional installation. Check with your provider before you buy.
5. Finished Basements
Finishing a basement adds living space. It’s a common DIY project. But basements are prone to flooding and water damage. If you add expensive flooring or electronics, your risk goes up. Many standard policies don’t cover water damage in finished basements. You might need extra coverage, which costs more. Always ask your insurer about coverage before you start.
6. Solar Panels
Solar panels are environmentally friendly and can help lower energy bills. But installing them yourself is risky. Panels add weight to your roof and can cause leaks if not installed correctly. Some insurers charge more for homes with solar panels, especially if they’re not professionally installed. You may also need extra coverage for the panels themselves.
7. Tiny Home Additions
Tiny homes, backyard cottages, and “she sheds” are trendy. They add space for guests or hobbies. But adding a structure to your property changes your insurance needs. These buildings may not be covered by your main policy. Insurers might see them as extra risk, especially if they have plumbing or electricity. You’ll likely need to update your policy and pay more.
8. DIY Electrical Work
Changing a light fixture is one thing. Rewiring a room is another. Many homeowners try to save money by doing electrical work themselves. But mistakes can lead to fires or injuries. Insurance companies may deny claims if they find out that unlicensed work caused damage. They may also raise your rates if you report major DIY electrical projects. Always hire a licensed electrician for big jobs.
9. High-End Kitchen Remodels
A well-designed kitchen can look great and boost your home’s value. But high-end appliances, custom cabinets, and stone countertops are expensive to replace. If you upgrade your kitchen, your insurance needs to reflect the new value. Otherwise, you could be underinsured. Insurers may raise your premiums to cover the higher replacement cost. Always update your policy after a major remodel.
10. Removing Fireplaces or Chimneys
Some people remove old fireplaces or chimneys to modernize their homes. But this can affect your home’s ventilation and structure. If not done right, it can lead to moisture problems or even collapse. Insurers may see this as a risk and raise their rates. Always consult a professional and your insurance company before making big changes to your home’s structure.
Rethinking DIY: Balancing Savings and Risk
DIY projects can make your home feel more like yours. But every change you make can affect your home insurance. Some projects add value, but others add risk. Before you start, talk to your insurance company. Ask what’s covered and what’s not. Sometimes, hiring a pro or getting extra coverage is worth the cost. The right planning can save you money and stress in the long run.
Have you noticed your home insurance goes up after a DIY project? Share your story or tips in the comments.
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