Renovations typically are changes homeowners make to improve the value of their houses. But not every renovation is created equal. In fact, there are some that might actually impact your home insurance in ways you would have never thought of. Your insurance score is a rating used by insurance companies to assess the likelihood of an individual filing a claim. It is a key factor in determining your premiums for auto, home, and renters’ insurance. That said, some of the renovations you make to your home can be flagged by insurers and have a negative impact on your overall score. Here are six home renos that could quietly change your insurance score.
1. Adding a Swimming Pool or Hot Tub
Your insurance score can dip after installing a pool or spa because insurers see elevated liability risk attached to unsupervised use. Most providers treat swimming pools as an “attractive nuisance,” meaning accidents—even in fully fenced yards—can raise claim potential. That extra risk typically forces insurers to increase your liability limits or your annual premium. In many states, you’re legally required to add safety features like fencing, alarms, or pool covers to avoid policy exclusions or rate hikes.
2. Converting a Garage into Living Space or ADU
Turning your garage into a finished bedroom, rental unit, or home office quietly shifts your property’s risk profile—and that usually worsens your insurance score. Insurers recalculate your dwelling coverage because you’ve added more square footage and value, and a homeowner conversion or rental uses different liability rules. If it lacks proper permits or structural upgrades, you may be downgraded to surplus lines coverage or even denied renewal. That starts driving up your premium and lowering your insurance affordability. Always alert your company before finishing a garage so you can adjust the policy—and prevent your insurance score from being silently downgraded.
3. High-End Kitchen or Bathroom Makeovers
Choosing top-tier materials like marble, custom cabinetry, or professional-grade appliances might make your kitchen stunning—but those same luxury choices increase your insurance score stress. Insurers base your rate on the cost to rebuild, and high-end finishes raise that substantially, prompting a higher premium even if no extra risk is added. Ironically, a basic refresh costs far less to insure than a gourmet Remodel with exotic standards. You’ll likely need to adjust your coverage limits and declare any upgrades so the carrier can reassess your risk.
4. Installing Solar Panels Without Policy Review
Putting solar panels on your roof adds value—and a new area of vulnerability that can push your insurance score downward if unchecked. While many policies now cover rooftop solar, insurers often require you to increase dwelling and equipment coverage to include panels, and in storm-prone zones, that means a noticeable premium bump. If the panels are ground- or pole-mounted, you may need a separate or endorsement cover under “other structures,” which insurers price higher. Out-of-pocket claims from hail or roof damage during mounting have recently triggered insurers to tighten underwriting, further affecting risk scores.
5. Doing DIY Electrical or Unpermitted Fixes
Tackling wiring fixes yourself or operating under the radar with unpermitted modifications may seem cost-effective—but if something goes wrong, your insurance score could tank. Carriers are increasingly rejecting homes with old knob-and-tube wiring, DIY circuits, and missing permits; those factors lead to higher-risk pricing or policy refusal—especially after a fire or code violation. Even if work looks solid, an unreported upgrade voids proper underwriting. That often forces a surcharge or pushes the policy into a non-admitted market where premiums are sky-high. A licensed electrician and inspection determine if your job helps—or secretly hurts—your insurance score.
6. Repurposing Rooms for Business or Rental Use
Converting part of your home into an office, Airbnb space, or workshop usually requires more than a cosmetic update—it changes your risk factors in insurers’ eyes and lowers your insurance score. If someone slips, equipment malfunctions, or you face a business liability claim, a standard homeowner policy may fall short—so insurers either mandate a business endorsement or hike rates to reflect expanded use. Even a modest home-based enterprise can shift your policy into business classification and raise your premiums. You’ll likely need special coverage to stay properly insured, but failing to disclose the change could result in the denial of future claims. Letting your agent know upfront keeps your insurance score in step with your evolving living space.
At the end of the day, renovations can be great for the value of your home, and they can even help you enjoy your home more. Where your insurance is concerned, however, companies may just see more risk. So, to keep your costs in check, it is important to speak with your insurance agent before you do any remodeling. Make sure you document everything and update your policy in the event that you make any major upgrades. This will help you ensure your coverage always matches the true value of your home.
Want renovation ideas that improve your home without harming your insurance score? Let’s hear what you’re planning in the comments!
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