With the current hot housing market and rising prices of homes and land, the idea of remodeling is sounding like an excellent option for making changes and adding more space to your home. All industry indicators point to a record number of people choosing to stay put and add value and convenience to their homes. How will your remodeling project affect your homeowner’s insurance before, during, and after your construction phase? Will a new garage or a second-story addition be an overall advantage when it comes to the expense of insurance? You may be surprised to find out that some of your concepts could cost you more in insurance, and a few of the more practical updates can lower those expenses.
Does Homeowner’s Insurance Cover Renovation?
When you finally take a deep dive into remodeling or renovating your space, there are so many factors to examine. If you consider taking on a simple refresh and think you can do the work yourself, your current insurance policy probably has you covered. Suppose you are hiring a general contractor and adding significant value to your property. In that case, you should speak with your insurance agent and review your current policy. Remember that you will need to read and evaluate the contractor’s commercial insurance policy to ensure your home is thoroughly covered during construction. As a precaution, you may elect to increase your homeowner’s insurance during renovation while still searching for ways to keep the costs low.
Will Home Renovations Increase The Cost Of Homeowner’s Insurance?
Adding value in the form of additional square footage or quality material updates to your interior can increase the cost of your insurance. At Independent Insurance Associates, we encourage you to have a conversation with us to determine how your plans will impact your costs and potential requirements for additional coverage. Adding a pool to your yard is great for resale value. The higher risk for liability and potential hazards will cost you. If you consider adding a home office, the increase in customer traffic or the threat of inventory theft can be pricey. We would caution you to consider adding a business owner’s policy rather than relying on an endorsement to your current coverage.
How Can Remodeling Save Money On Insurance?
Though not nearly as exciting as adding space or updating your bathrooms, adding a new roof or upgrading plumbing and electrical can save you money. You could qualify for discounts on your homeowner’s insurance by adding to your home’s safety and security. Even though you may find that you will need to increase your home insurance during renovations, the added expense will likely be balanced out by the savings and discounts of strategic home improvement.
Do I Need Home Insurance For Renovations?
Every home improvement project is unique. Making time to discuss your plans with your insurance agent will help you determine if you need special coverage for the duration of your renovation. You may wish to consider builder’s risk insurance. If you must live elsewhere while construction is in progress, you may need vacant home insurance. Your agent at Independent Insurance Associates will be happy to advise you on any additional remodeling insurance for homeowners that might apply to your particular situation.
Renovating and remodeling your house will likely increase the overall value of your home. Remember that all those shiny new surfaces and additional square footage will likely increase your replacement insurance costs. Be sure to contact your local Independent Insurance Associates when you make improvements to your property. An increase in your monthly budget for homeowner’s insurance will be worth the peace of mind for the best protection for your most significant asset.