Should I tell our insurance company about a reno?

Hey Carlos! I would think you would want to update your policy to include the finished basement for replacement value!

I would tell them in case of a fire etc. or the damage down there wont be covered.

Now that it is actual living space -- you may wish to cover the space in case of claim/damage in the future. Yes, your premium may increase. The other thing to think about is taxes -- many times it will not be taxed or taxed as equal to above ground living space if not permitted. If you finished this are for a family member with a disability -- there could be credits involved. You have definitely increased the value of your property!

I would recommend letting you Insurance carrier know. The benefits is you have updated your policy to include your renovation and extra sq ft of finished area . Your down side may be a small insurance price increase due to the nice renovation. I feel the it beneficial for you to update .

I would recommend letting your insurance company know of the updates so they can adjust your insured value in case something happened in your basement that you needed to file a claim.

Illinois may have different laws, but in california, If it adds value, I would definitely let the insurance company know. Especially if you would like the insurance to repair it.