A home remodeling project is an exciting venture, offering the chance to enhance your living space and potentially increase the value of your property. However, it’s also worth considering how such an improvement can have an impact on your home insurance policy. Local interior remodeling contractor DreamMaker Bath & Kitchen of Greater Rockwall explains more.
Understanding the Need for Updated Coverage
Renovations, by nature, are intended to improve your home, whether by adding more square footage, upgrading existing kitchen or bathroom features, or enhancing your outdoor space with a new deck or pool. Though the primary goal isn’t to complicate your insurance matters, it’s an inevitable part of the process that demands attention. As your property’s value increases through remodeling, so does the need to ensure your insurance policy reflects these improvements accurately.
Building Additions and Structural Changes
Expanding your home’s footprint or altering its structure significantly impacts its replacement cost. From adding a modern kitchen to converting an attic into a liveable space, each project potentially increases the value of your home. It’s essential to communicate these changes with your insurance provider to ensure your policy’s coverage limit is adequate, guarding against being underinsured in case of unforeseen events.
Kitchen Upgrades and Other Related Improvements
A kitchen renovation is among the top remodeling projects that not only enhance your home’s aesthetics but also its functionality. High-end upgrades like granite countertops or energy-efficient appliances in the kitchen, or storm-resistant roofing materials, can significantly increase your property’s market and replacement value. Adjusting your insurance coverage to match these improvements ensures that, in the event of a disaster, your policy provides sufficient funds for repairs or rebuilding to the new standards.
Essential Steps Before and After Remodeling
- Notify Your Insurer Beforehand. Before starting your remodel, inform your insurance provider about the planned changes. This preemptive step allows you to understand how these changes may affect your premiums and coverage.
- Review Your Policy Annually. Your home insurance needs may evolve over time, especially after a renovation. An annual review of your policy helps ensure your coverage continues to meet your needs as your home grows in value.
- Consider Additional Coverage. Certain renovations might necessitate specific additional policies during the construction phase, like a builder’s risk insurance, to protect against damage or loss of materials and the structure.
Let’s Start a Conversation!
Transforming your home is an investment in your comfort, lifestyle, and property’s value. As you embark on this journey with DreamMaker Bath & Kitchen of Greater Rockwall, a trusted choice when searching “home contractor near me” online, remember the importance of aligning your home insurance policy with the new value of your renovated space. To discuss your remodeling plans, give us a call at (469) 564-0146, or fill out our convenient online form. We serve residents in Rockwall, Rowlett, Sachse, Heath, Royse City, The Shores, Harbor Point, High Point Ranch, Woodbridge, Buffalo Creek and the surrounding areas.
