Remodeling your home can be an exciting venture. Whether it’s revamping the kitchen, adding a new bedroom, or upgrading your bathroom, each alteration adds personality and value to your home. However, as your home evolves, it’s crucial to consider how these changes affect your home insurance policy. Local home remodeler DreamMaker Bath & Kitchen of Reno shares insight in this blog post.
The Added Value Requires Added Protection
It’s a common misconception that once you’ve secured a home insurance policy, you’re set for life. However, remodeling projects can significantly increase the value of your home, potentially leaving you underinsured. For example, transforming an outdated kitchen into a modern culinary space with granite countertops and custom cabinetry not only enhances your home’s appeal but also its replacement cost. Similarly, adding a swimming pool might seem like a luxurious upgrade but it introduces new liabilities, making it essential to reassess your coverage limits and liability protection.
Navigating Insurance Adjustments
- Upgrades That Could Raise Your Premium. Some renovations increase the value of your property, which could, in turn, raise your insurance premiums. This is particularly true for expansions that add living space or costly features like pools, as they increase both your home’s replacement cost and potential liability risks. Renovations like adding a home office or completing a basement also necessitate a conversation with your insurance provider to ensure your coverage reflects these enhancements accurately.
- Discussing Renovations With Your Insurance Agent. Before you embark on an interior remodeling project, be sure to consult with your insurance agent. They can advise you on whether your current policy covers the construction process and the post-renovation home value. You’ll want to make sure that your coverage is updated to match the increased value and new features of your home accurately.
- Renovations That May Lower Your Premiums. Interestingly, some remodels can reduce your insurance costs. Upgrades that strengthen your home against adverse weather, such as storm-resistant windows or a new, more durable roof, can make you eligible for discounts. Similarly, modernizing your electrical and plumbing systems might reduce the risk of fire and water damage, potentially lowering your premiums.
The Importance of Proper Insurance During Renovations
Ensuring adequate coverage during the renovation process is just as crucial as updating your policy post-project. In some cases, especially substantial remodels, you might need a builder’s risk policy to cover the construction phase. Without it, you risk not being protected against possible damages or losses during the renovation.
Let’s Start a Conversation!
Remodeling your home is an investment in comfort, functionality, and aesthetics. However, as you improve your property, don’t overlook the impact these changes can have on your home insurance. Review and adjust your policy so you can be sure your beautiful home and the enhancements you make are fully protected.
To jumpstart your project, look no further than the top choice online when looking up “remodeling contractor near me“, DreamMaker Bath & Kitchen of Reno. We serve homeowners in Reno, Sparks, Incline Village, Spanish Springs, Verdi, Truckee, Lake Tahoe, and Carson City. Call (775) 522-7888, or fill out our contact form to schedule a consultation.
