As we’re continually bombarded with spectacular home renovation ideas seen on the latest HGTV show, or something we’ve come across on Pinterest, it’s important to decide on home improvements that increase value for your home and your insurance policy.
Of course it’s not always about value—after all, your home should be comfortable. At the same time, it’s important to have all the facts when making any major investment. We’ve done some digging into the facts about home renovations and have come up with a list of 5 home improvements that you should prioritize over the rest.
#5 – Flooring
Flooring is one of the most important aspects of your home. It’s everywhere, literally. You’ll see an immediate rise in property valuation with the installation of quality hardwood floors and or tiles.
Existing hardwood floors that you can refinish are ideal as they are less expensive to restore, plus they’re in higher demand than new flooring materials. For the bathroom, tile will always be in demand and retain value exceptionally well.
Flooring is also one of those questions your home insurance company needs to know when determining the cost to rebuild your home.
That’s why it’s important to keep your policy updated as you go—the best home improvements that increase value might not be covered if your policy didn’t reflect them before you need to make a claim.
#4 – Household fixtures
Replacing or updating these parts of your home can go a long way, too:
- Cabinet hardware
- Light fixtures
- Window coverings
- Doors and door knobs
These are some of the most immediately visible (and therefore valuable) parts of a home. These small-but-effective upgrades will also revitalize the entire home.
Pot lights, for example, are in high demand in open-concept homes, providing an extra boost in your home’s perceived value.
You can upgrade your home’s value on the outside, too!
#3 – Bathroom
The bathrooms are the second-most important aspect of a home’s valuation. If you can add a three-piece bathroom to a home with only one full bathroom, then you’ll see a significant rise in the market value of your home.
“Bathrooms are generally small rooms where $1,000 can go a long way. Even when hiring a plumber, you could still afford to replace the toilet and sink.” – Anne Reagan, Porch.com
While you should never compromise bedroom space for a bathroom in general, an excessive amount of bedroom “dead space” might make for a nice en-suite bathroom.
As an added tip, use glass for the shower barrier to make the bathroom feel more spacious.
#2 – Kitchen
Kitchens can tend to look tired and dated over time. Considering so much time is typically spent there, it’s one of those rooms that’s always on your mind (unlike a basement). Kitchens are one of the most important rooms in the home relating to valuation.
The kitchen can make a significant difference in the value of your home. As such, it is crucial that you invest in having a modern, fresh, and desirable kitchen.
Modern cabinetry, under-cabinet lighting, and new appliances are among the best improvements that increase value in your home. To save on costs without compromising construction and desirability, look at options offered by some of your local retailers instead of relying exclusively on custom cabinetry.
Don’t forget to tell your insurance company about renovations either, because you’ll want to stay covered throughout the process.
#1 – An income suite
This one’s certainly not for everyone, but—to no one’s surprise—the single biggest way to increase the value of your home is to build an income suite within the property.
This often means converting a basement or an entire floor into a rental unit, which will increase your home’s worth quite a bit. The main reason for this is that it covers a portion of your mortgage payments. Sometimes it can even cover all of it, making your home a cash-flow-positive asset on your personal balance sheet.
That will be a huge bonus to prospective buyers, especially younger ones. If this is something you’re considering, speak with your insurance broker about the best insurance solutions for you in order to protect both yourself and your home with respect to legal liability.
Get an accurate 3-minute quote right here to see your home’s cost to rebuild!