Renovations can add excitement, value, and yes, even modifications to your home insurance, whether you are installing a pool, remodelling your kitchen, or simply increasing your living area.
Here are five renovations that may affect your coverage and premiums before you get out your sledgehammer.
1. Constructing an addition or additional space
More room, comfort, insurance, etc. Yep! Adding a room or an extension to your house raises its worth and the cost of rebuilding it, so you may also need to improve your insurance coverage.
You risk being underinsured in the event of damage or calamity if you do not update your coverage following an expansion. Therefore, call your insurer right now before you begin designing that new sunroom!
2. Making Roof Upgrades
In addition to increasing curb appeal, a new roof can lower your insurance costs! Because they reduce the chance of damage, many insurers give discounts for roofing materials that are fire or impact resistant.
The problem is that some roofing materials might actually raise your prices. Consult your insurer about the potential impact on your insurance before deciding to have a new roof.
3. Constructing a Pool
Ah, the backyard pool dream: carefree days, summer gatherings, and increased insurance premiums. Although they can raise the value of your home, pools can present a liability risk.
In the event of an accident, the majority of insurance firms advise increasing your liability coverage. To keep your premiums under control, some may even need safety precautions like a gated fence. Make sure your coverage is current before you jump in!
4. Renovating Your Bathroom or Kitchen
Although a spa-like bathroom or a modern, fresh kitchen might make your house feel brand new, they can raise the expense of replacing it. Designer fixtures, expensive countertops, and high-end appliances all increase value and may result in increased insurance costs.
Make sure your renovated area is fully covered by your insurer after your remodel is finished.
5. Setting Up a Rental Unit or Home Office
Are you considering renting out or converting that extra room into a home office? Excellent idea, however be advised that it may necessitate further coverage.
Operating a home-based business? Business property insurance could be necessary.
Are you renting out some of your house? Insurance for landlords may be necessary.
It is critical to keep your insurer informed of these changes in order to prevent coverage gaps.
Concluding remarks
Renovations can change the way you live and increase the value of your house, but do not forget about your house insurance! Maintaining an up-to-date policy guarantees complete protection whether you are installing a pool, adding a room, or renovating your roof.
Consult your insurance provider before making any significant changes to determine how they will affect your coverage (and potentially your pocketbook!). Planning ahead can help you avoid unpleasant surprises later.
