Can A Home Renovation Affect My Insurance?


Home Renovation and InsuranceYour roof needs to be replaced. The kids have been begging for a pool and you've finally succumbed to their incessant requests. You've decided to remodel your outdated bathroom and kitchen. Any change to the structure or use of the property will, more often than not, change your policy. However, you'll never know until you contact your insurance company, which you should do before any type of home renovation.

Some home renovations can reduce insurance premiums

Home renovations don't necessarily mean that your insurance rates will increase. Roof damage makes up the majority of homeowner claims; old roofs and roofing material have a higher risk for claims than those updated, so getting a new roof may help lower your insurance costs. Adding safety features such as security systems, gas detectors, smoke alarms and fences around a backyard or pool can provide discounts and cut costs in your premium in that security is providing you with safety. This goes for updating or replacing your HVAC system, electric and plumbing since these types of upgrades provide a lower hazard risk.

Make sure your insurance protects you during construction

While certain upgrades provide safety discounts, other improvements may require more or different insurance and may result in higher insurance premiums such as more living space, upgrades to kitchen or bathroom, and the installation of a pool. Adding an addition to your home equals more square footage and more value to your home. Insurance companies look at how much it would cost to rebuild your home if a devastating event were to occur. Your new premium would reflect that added square footage. The most important reason you'll want to contact us before the addition is made is to be covered in case something were to happen mid-construction.

From an insurer's point of view, one of the most expensive additions to your home is a pool since not only should you insure the structure, but also obtain liability insurance to prevent against legal action taken against you should someone get injured. Pools and trampolines are known as "attractive nuisances" and require safety precautions and can affect your homeowner insurance premium.

Check with us to make sure your insurance matches your renovation plans

Regardless of the magnitude of your home improvements, it's best to be upfront and honest about what changes are being made so that your policy can reflect and cover your home accordingly. You'll want to have enough coverage while taking advantage of all the possible discounts. Start the conversation with your agent. Home improvement is exciting and insurance doesn't have to dampen that excitement!

For any home insurance questions, call or contact Executive Insurance & Financial Services today.

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