Embarking on a home remodel is an exciting venture for any homeowner. It’s a chance to enhance your living space, tailor your home to your needs, and potentially increase your property’s value. However, amid the planning, designing, and dreaming of your renovated space, it’s essential not to overlook how these changes could affect your home insurance coverage. Read on as local home remodeler DreamMaker Bath & Kitchen of Southern Lakes sheds light on the matter.
Renovations That Increase Your Home Insurance Rates
When you add value to your property through renovations, you’re not just upping the curb appeal or the functionality of your home; you’re also potentially increasing the cost to rebuild your home in the event of a disaster. This added value could lead to an increase in your home insurance premiums because your coverage limits may need to be adjusted to align with your home’s new value.
- Building an Addition or a Pool. Adding an extension to your home or a swimming pool in the backyard significantly increases your property’s value and, consequently, the amount it would cost to rebuild. Such additions could make your property more desirable but also require increased coverage limits on your homeowner’s insurance policy.
- Upgrading Your Kitchen or Bathroom. Kitchen, bathroom, and other interior remodeling projects are among the most common home renovation projects. These renovations can drastically increase the value of your home, requiring a reassessment of your insurance coverage. High-end finishes and appliances not only add to the beauty and functionality of your home but also to its replacement cost, necessitating a potential increase in your insurance premiums.
Renovations That Could Lower Your Insurance Rates
It’s worth noting, however, that not all renovations lead to an increase in insurance costs. Some updates can make your home safer, reducing your risk profile and potentially lowering your insurance premiums.
- Roof Replacements and Electrical Upgrades. Replacing your roof or updating your home’s electrical system can have a positive impact on your insurance rates. These improvements can enhance the safety of your home, minimizing risks related to weather damage or electrical fires. A new roof, meanwhile, could be less susceptible to damage from storms, snow, or trees, possibly leading to insurance discounts.
- Installing Security Systems. Adding a sophisticated security system can deter theft and vandalism, reducing the likelihood of claims related to break-ins. Many insurers offer discounts for homes equipped with monitored alarm systems, as they present a lower risk.
Communicating With Your Insurance Company
Before you start any major renovation project, be sure to communicate with your insurance provider first. Some changes will necessitate an adjustment to your coverage, whether increasing your dwelling coverage or adding liability coverage. You may also need to temporarily adjust your coverage during the construction phase to protect against risks associated with construction accidents or theft of materials.
Let’s Start a Conversation!
Still looking up “remodeling contractor near me” online? You no longer need to, because DreamMaker Bath & Kitchen of Southern Lakes is here to help meet your remodeling needs. We are dedicated to enhancing your home and ultimately, your lifestyle through thoughtful, personalized designs that take your needs and budget into account. Call us today at (262) 500-3689, or fill out our contact form to schedule a consultation with our experienced remodeling team. We serve Pleasant Prairie, Union Grove, Bristol, Salem, Sturtevant, Mt. Pleasant, Somers, Paris, Twin Lakes, Brighton, Kansasville, and Caledonia.
