How Remodeling Can Impact Your Home Insurance

While renovations can increase your property’s value and improve your quality of life, they can also impact your home insurance. Understanding how these changes affect your coverage is essential to protecting your investment. A home remodeler discusses what you need to know about the connection between remodeling and home insurance.

Increased Home Value

When you remodel your home, especially with major projects like a kitchen overhaul or room additions, your property’s value may increase. Since your insurance policy is based on the cost to rebuild your home, you may need to adjust your coverage limits. If your home value rises significantly but your insurance policy remains unchanged, you could be underinsured in the event of damage or loss.

Upgrading Safety Features Can Lower Premiums

Certain interior remodeling solutions, such as upgrading electrical wiring or adding fire-resistant materials, can make your home safer. Insurance companies often reward these improvements with lower premiums. For example, a modern roof can better withstand weather damage, while new electrical systems can reduce the risk of fires. Be sure to inform your insurance company about these upgrades to see if you qualify for discounts.

Liability Coverage Adjustments

If your remodeling project includes features like a new pool or deck, you may need to increase your liability coverage. These additions, while enhancing your home’s value, also increase the risk of accidents or injuries. A higher liability limit can protect you in case someone is injured on your property.

Temporary Risks During Construction

During renovations, your home may be exposed to additional risks, such as theft or damage from construction. Some insurance policies provide special coverage for construction projects, but it’s a good idea to check with your provider to see if you need a policy upgrade during the remodeling period.

Let’s Start a Conversation!

If you’re looking for a “contractor near me“, contact DreamMaker Bath & Kitchen of Elizabethtown at (717) 452-4942 or fill out our online form to schedule an appointment. We serve homeowners in and around Hershey, Mount Joy, Lancaster, and Harrisburg.

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