Home Renovations that Can Affect Your Homeowners Insurance

If you're planning a home renovation, it may be wise to consult your insurance agent first. Renovations to your house can affect your insurance needs in various ways, some of which may even result in a reduction in your premium. This article will walk you through six ordinary circumstances that could affect your insurance and how to prepare.

Constructing a New Room or Wing

Expansion and improvement of your home will almost certainly raise the replacement value. In other words, this is how much it will cost to fix or rebuild your house. A second-story bedroom, a larger living room, or a new garage are all possible upgrades that could raise your home's replacement value.

You may need to increase your insurance coverage if the worth of your property and the cost of rebuilding it have grown due to the construction of a new addition or other changes. It is required in most cases that you have at least 80% of the replacement value of your home covered by your Coverage A or dwelling coverage limit.

Because of the addition or improvement, your insurance agent might recalculate the worth of your house to see if you need additional coverage.

Construction of a Pool

Whether you're planning on installing a swimming pool, you'll need to check with your insurance agent to evaluate any changes in your property's worth or risk. There is a risk of an accident when individuals swim and run around the pool. A potential lawsuit could happen if someone is injured. Even if you were not at blame for the accident, you should follow these guidelines.

Find out if your current insurance includes a swimming pool and whether you need to raise your liability coverage. As a result of their injuries, you may be able to receive compensation for damages and defend yourself in court.

To minimize mishaps, you should ask your real estate agent what precautions to take to keep your pool in good condition. It's a good idea to install a lockable fence around your property. Consider installing motion-activated lights or an alarm system around the pool to deter intruders. Consider bypassing the diving board, as this raises the risk of an accident and the cost of your insurance.

A Deck to Your Home

It's possible to increase the value of a home with a new deck attached to a second story or higher, but it also comes with a degree of danger. Notifying your insurance agent of adding a deck will allow them to make any necessary adjustments to your policy.

Making a New Look for Your Kitchen

Adding new countertops, appliances, and flooring to your kitchen can significantly raise the value of your property. Contact your insurance agent to determine if you need to increase your policy limits.

Ask your insurance agent if you qualify for a discount or if your coverage has to be altered if your contractor updates the plumbing or electrical wiring as part of the remodeling. Check with your insurance carrier to see whether they offer discounts for these modifications, which can help lower your premiums.

Completing the Lower Level

The value of your property may arise due to finishing your basement. As a result, you may require additional homeowner's insurance. If you live on the lowest floor of your home, flooding can be an issue. Flood damage is typically not covered by most homeowners' insurance plans. A sump pump may be able to assist in protecting your home from future harm if you ask your insurance agent to evaluate your policy.

Roofing Repairs

Ask your insurance agent if a new roof can qualify for a discount before beginning the project. The use of wind, hail, and leak-resistant roofing materials may entitle you to a discount from some companies. For further qualifying information, ask your agent. However, if you decide to redo your roof, the increased worth of your home may necessitate a more significant insurance policy.

Consult with your home insurance agent before embarking on any home improvement projects. They can assist you in making the most out of your discounts while also ensuring that their expertise appropriately covers your property.