Remodeling your home can be an exciting venture, providing a fresh look and feel while potentially increasing its overall value. However, before starting your interior remodeling project, it’s important to consider factors beyond just design and construction. Look into changes that can also impact your home insurance policy.
In this post, DreamMaker Bath & Kitchen of Larimer County discusses how various home improvements can influence your home insurance.
Renovations That Can Increase Your Insurance Premiums
Certain renovations can significantly increase the value of your property. For instance, adding a swimming pool, upgrading your kitchen or bathroom, or expanding your living space can make your home more desirable and, by extension, more costly to replace. These changes could lead to an increase in your home insurance premiums since your coverage needs to align with the updated replacement cost of your home.
Adding features like a swimming pool can also raise liability concerns, potentially necessitating higher liability coverage to protect against the risk of accidents.
Projects That Can Lower Home Insurance Costs
On the flip side, some home improvements can lead to deductions in your insurance premiums. Upgrades that enhance the safety and structural integrity of your home, such as a new roof, updated wiring, or the installation of modern plumbing, could reduce the risk of claims related to weather damage, fire, or water leaks.
Many insurers offer discounts for these types of enhancements since they decrease the likelihood of costly damage. Consult a reputable home remodeler for expert advice on renovation projects that can help lower your insurance costs.
Informing Your Insurance Provider About Renovations
It’s crucial to communicate with your insurance provider about any significant renovations. Not only can these changes affect the cost of your policy, but they can also influence the coverage you need. Overseeing a renovation without updating your insurance policy may leave you underinsured, posing a financial risk should issues occur post-renovation.
Furthermore, for projects that add considerable value or substantially change the structure of your home, your insurer may recommend increasing your coverage limit. This ensures that any new additions are protected and that your insurance reflects the current replacement cost of your home.
Home Renovation Insurance Options
During renovations, consider whether or not you require additional insurance coverage. Builder’s risk insurance can protect materials and partially completed work if damage occurs mid-project. Additionally, if your home will be unoccupied during the renovation process, vacant home insurance could provide coverage that a standard homeowners policy might not.
Let’s Start a Conversation!
DreamMaker Bath & Kitchen of Larimer County is a family-owned business that offers quality remodeling solutions. Reach out to us at (970) 695-1320 or complete our contact form to schedule an appointment.
