Can an Enclosed Pergola Cause a Home Insurance Increase? Here’s the Truth

Your pergola might have started out as a simple outdoor feature. But once you’ve enclosed it with glass walls, zip curtains, or sliding panels, it turns into a cozy extension of your home. With that transformation comes a new question: could enclosing your pergola affect your home insurance?

The short answer is yes, it can. Not always, but in many cases, insurers treat enclosed structures differently than open ones. Enclosing your pergola? Learn how it may cause a home insurance increase and what steps to take to stay covered.

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When a Pergola Becomes More Than Just a Pergola

Most pergolas are open-air and decorative. But when you enclose yours even partially  it starts to serve a more functional purpose. Whether you’re turning it into a reading nook, a dining area, or a mini sunroom, insurance companies may consider it a permanent structure or even part of your home.

This matters because anything that adds value to your property or increases potential risk needs to be accounted for in your policy. If your pergola is attached to your house, features permanent roofing or electrical wiring, or has fixed enclosures, there’s a good chance your insurer will want to reassess your coverage.

How It Might Affect Your Home Insurance Premium

Adding an enclosed pergola doesn’t automatically mean your premium will jump. But it could lead to a slight increase, depending on how the structure is built and how your provider classifies it. Insurance companies factor in things like construction materials, location, use, and whether or not the addition increases your home’s livable space.

If enclosing your pergola turns it into something more like a sunroom, you’re potentially increasing the value of your home which means your policy needs to reflect that added value. Plus, if you’ve installed lighting, heating, or entertainment features, those raise the overall replacement cost. Insurers might also see enclosed spaces as more prone to weather damage or liability risks, which can impact your premium.

What to Do Before You Enclose Your Pergola?

If you’re planning to enclose your pergola or already have it’s smart to check your local building codes and zoning regulations first. Many areas require permits for structural changes or electrical installations, especially if the pergola is attached to your home or includes walls and roofing. Once you’ve confirmed it’s built to code, reach out to your home insurance provider. Let them know about the update, share any documentation like permits or construction plans, and ask how it might impact your current policy. Being upfront avoids any issues if you ever need to file a claim later.

It’s also helpful to take photos of the finished space and keep receipts for materials and labor. These details not only support your insurance documentation but can also help if you decide to sell your home in the future.

Is It Worth the Insurance Bump?

In most cases, yes. An enclosed pergola adds comfort, function, and appeal to your home. Whether you’re using it for quiet mornings, family dinners, or entertaining guests, it’s a space you’ll enjoy year-round. And if the insurance increase is small which it usually is it’s a fair trade for the upgrade in lifestyle and property value.

As long as your pergola is properly built and documented, the extra coverage is a smart safety net. It protects both the structure and anything inside it, giving you peace of mind if bad weather, fire, or an accident ever happens.

Conclusion

Enclosing a pergola can turn a basic backyard structure into a versatile, year-round living area. But it also changes how insurers view that space. From coverage to premiums, it’s important to understand how the transformation affects your home insurance.

The best move is to plan ahead. Build smart, follow local codes, talk to your insurer, and make sure your policy reflects the improvements. With a little prep, you’ll enjoy your enclosed pergola worry-free, knowing everything is covered. 

FAQs

Does an enclosed pergola raise insurance?

Yes, if it’s permanent or adds home value.

Should I inform my insurer about my enclosed pergola?

Yes. Always let your insurer know when you make structural changes. This ensures you’re covered properly if you need to make a claim.

Do zip curtains count as an enclosure?

They can, especially if they’re installed in a fixed way and used year-round. It varies by provider, so check with yours.

What kind of permits might I need?

 It depends on your area, but you may need permits for roofing, electrical work, or if the pergola is attached to the main house.