Any home remodeling project is an exciting one. But, because it means changes to your entire property, it can also cause changes to other aspects about your property, such as its insurance policy. In today’s post, interior remodeling experts from DreamMaker Bath & Kitchen of Lubbock share the possible effects your new project can have on your existing policy.
Renovations That Increase Home Insurance Rates
It’s a common misconception that home improvements could lead to lower insurance costs. While this can be true in some cases, many renovations, especially those that increase the value of your home or its rebuilding cost, can lead to higher home insurance premiums. For instance, adding a luxurious master suite or a state-of-the-art kitchen in your home can increase its replacement value, necessitating a review and possible adjustment of your coverage limits.
Additionally, certain additions like swimming pools can also increase your liability risk. Pools are considered an “attractive nuisance” and can lead to higher liability coverage requirements to adequately protect you from potential legal and medical costs stemming from accidents.
Renovations That Could Lower Your Premiums
Not all renovations that “the best contractor near me” can lead to higher costs. Some upgrades, especially those enhancing your home’s safety and resilience, could qualify you for discounts. For example, replacing an old roof with newer, more durable materials can lower the risk of damage from occasional severe weather. Similarly, updating old electrical systems can decrease fire risks. Simply put, making your home safer will potentially lower your existing insurance costs.
Communicating with Your Insurance Provider
Regardless of the nature of your renovations, communication with your insurance provider is key. Prior to starting any major projects, it’s advisable to consult with your insurance agent. This ensures that you’re aware of any potential changes in your coverage needs and can make adjustments accordingly.
Renovations and Policy Adjustments
Post-renovation, it’s crucial to reassess your coverage. Significant improvements can change the replacement value of your home and may increase your dwelling coverage limit to ensure full protection. Conversely, safety upgrades may qualify you for premium discounts or reduced rates. Ask your insurer or home remodeler to help you assess the possible final effects of your new project once done.
Let’s Start a Conversation
For top-notch renovations that achieve your goals and ideal space as you envision it, only work with the best home remodeling contractors in town, DreamMaker Bath & Kitchen of Lubbock. Call us at (806) 425-1468 or fill out this contact form to reach us.
