Home renovations are an exciting endeavor, offering homeowners a chance to enhance both the functionality and aesthetics of their living spaces. However, amidst the thrill of picking out new fixtures or tearing down walls to create an open floor plan, it’s crucial not to overlook how these changes might affect home insurance policies. Local home remodeler DreamMaker Bath & Kitchen of Amarillo explores the impact of your home renovation on your home insurance, ensuring that the added value to your property is adequately protected.
Renovations That Increase Home Insurance Rates
Several renovation projects can increase the value of your home, potentially leading to higher insurance premiums due to the increased cost to rebuild or repair your home in case of a claim. For instance, adding a swimming pool, building an extension, or upgrading your kitchen or bathroom can significantly increase your home’s replacement value. A swimming pool poses additional liability risks and may require increased liability coverage. Adding a room increases the square footage of your home, necessitating a reassessment of your dwelling coverage. High-end upgrades in kitchens and bathrooms can also inflate the replacement cost of your home, possibly leading to higher premiums.
Renovations That Lower Home Insurance Rates
On the flip side, some exterior and interior remodeling projects could lower your insurance rates by improving the safety and durability of your home. Upgrading your roofing, electrical, or plumbing systems can make your home less susceptible to damage from perils such as water leaks, fires, or severe weather, potentially qualifying you for discounts. Similarly, the installation of security systems or smart home devices that monitor leaks, smoke, and security can further reduce your insurance costs by lowering the risk of claims.
Increased Coverage and Additional Insurance Options
When you embark on a home remodeling project, it’s essential to evaluate whether the improvements increase the replacement cost of your home. If so, you might need to increase your dwelling coverage to match the new value of your home post-renovation. Additionally, consider whether any part of the renovation could leave you temporarily residing elsewhere, necessitating coverage adjustments for a vacant or unoccupied home.
For specific whole home remodeling projects, such as the addition of luxury fixtures or extensive structural changes, you might need to explore additional insurance options like a builder’s risk insurance. This insurance covers materials and fixtures not yet installed in your home, protecting them from theft or damage during the renovation.
Consult Your Insurance Provider
The best practice when undergoing home renovations is to keep an open line of communication with your insurance provider. Informing them about your plans before starting renovations can help ensure you’re adequately covered throughout the process and afterward. Your insurer can advise on the necessary adjustments to your policy, ensuring that your newly remodeled home is fully protected.
Let’s Start a Conversation!
While remodeling your home can bring great joy and added value, it’s crucial to consider its implications on your home insurance policy. By understanding how renovations can affect insurance rates and coverage needs, you can take proactive steps to ensure your investment is adequately protected. That’s why at DreamMaker Bath & Kitchen of Amarillo, we encourage homeowners to consult with their insurance providers before and after remodeling projects to ensure their policies reflect the true value and condition of their upgraded homes.
Your search for a “remodeling contractor near me” stops here! Reach out to our team by calling (806) 356-8002 or filling out our contact form to schedule a consultation. We serve Amarillo, Canyon, Pampa, Borger, Dumas, Hereford, Dimmitt, Tulia, Fritch, and the rest of the Panhandle.
