4 home improvements that may affect your homeowners insurance — part 2

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Many of today’s homeowners have been inspired by house-flipping shows to learn practical tips and savvy tricks to either increase their home’s resale value or, for those who prefer to stay put, refresh their living space for its long-term use.

While these shows highlight the newest trends that resonate with new buyers or help customize a house to an owner’s current needs, what they don’t tell you is how remodeling might affect your homeowners insurance coverage.

“Building an addition and adding square footage, renovating a kitchen or bathroom, or other significant changes made to a home will increase its value,” Jane Li, Mercury Insurance director of product management said. “One thing which can’t be overlooked, however, is that these renovations will also increase the home’s replacement cost if it is damaged or destroyed, so it’s very important that homeowners also adjust their insurance policies to ensure the home is properly insured in the event disaster strikes.”

Here are four improvements Li recommends discussing with your insurance agent before making upgrades.

3. Replacing plumbing fixtures

Sometimes, all it takes to give your kitchen or bathroom a new look is to swap out your old sink for a new one.

If you decide to replace some of your home’s plumbing fixtures, it’s important to make note of the upgraded materials as they may be of a higher quality — and thus have a higher replacement cost — than the original equipment. It’s also a good time to consider installing a water-leak detection system, as claims due to water-related damages, like bursting or leaking pipes, or malfunctioning appliances, are the most commonly filed homeowners insurance claims, according to Mercury Insurance.

“Many leaks can be difficult to detect since most pipes are enclosed inside walls,” Li said. “We recommend installing water-leak sensors or shut off devices if you are making plumbing upgrades, because they can be very helpful in preventing extensive water damage. Some can automatically shut off the home’s main water supply if a leak is detected and might even qualify you for a discount on your insurance.”