Planning a home renovation project is generally an exciting time. You’ll have the opportunity to install new amenities around your home. However, before you finalize plans, it’s important to consider the renovation impact on home insurance. The renovation project could cause the need to amend your policy so that you can avoid potential losses. In other instances, the renovation project may help you qualify for new savings.
Here is a look at the different ways that renovating your home may impact your insurance.
Renovating your roof can help you save money. You may even qualify for benefits if you reside in a state that is prone to natural disasters, such as hurricanes, and your new roof has hurricane straps or is waterproof. Your insurer may use a depreciation schedule based on the roof’s age to see how much protection you qualify for. Consider adding flood coverage if you stay in an area with a high potential for flooding.
Upgrading Your Space
For multiple reasons, you may feel that you need to renovate your home. Adding more square footage is one way of renovation affects home insurance rates. You’ll have to amend your policy to account for the extra space in your basement or living room. Each area of your home may require a specific type of coverage. If you add new drywall and insulation, you’ll have to add flood coverage so that you will be protected if damages occur.
Installing A Pool
Installing a pool comes with a lot of risks. You’ll have to add liability protection to cover any injury to swimmers in your pool. It may benefit you to install a fence around the pool to reduce the liability risk.
Renovating Your Kitchen
If you plan to renovate your kitchen, you’ll have to plan for the risks that come with it. If you’d like to install custom cabinets and countertops, you’ll need to find coverage that protects you if a disaster occurs. Update your policy to have the necessary coverage if you need to rebuild your kitchen after a disaster. Make sure that you take detailed pics and photos of the project. This also helps your insurer provide you with a clear estimate of the true value of your home.
Renovating Your Home’s Systems
If you choose to renovate your home’s plumbing or electrical systems, you may qualify for a discount. This is especially true if you are upgrading the system alongside another project.
On average, remodeling projects can increase the value of your home by 20 percent. When you increase your home’s value, you will most likely see an increase in the cost of your coverage; however, the new rate protects you in the event of a rebuild due to an emergency.
Make sure that you document your contractor’s insurance. Your contractors should have insurance to protect them while they are performing tasks at your home. You should document their workers’ compensation and liability coverage.
Depending on the work that you are having done, there is a renovation impact on home insurance. Take the time to research your policy carefully. As a homeowner, do you need help deciding which homeowners insurance policy to purchase? Visit Abbate Insurance for your insurance policies in New Haven and neighboring cities in Connecticut!