A home remodel is an exciting endeavor. However, since it involves substantial alterations to your property, this undertaking can have an impact on your insurance policy. Local interior remodeling 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.
Local home remodeling contractors also note that 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 can lead to higher insurance 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!
As a trusted “home remodeling contractor near me”, DreamMaker Bath & Kitchen of Lubbock is committed to realizing your vision for your living spaces. We utilize an established process that minimizes stress and takes your needs and budget into account. Call us at (806) 425-1468 or fill out this contact form to schedule a consultation. We serve homeowners in Plainview, Shallowater, Idalou, Ransom Canyon, Slaton, Levelland, Littlefield, Abernathy, Hair Center, Wolfforth, Post, Brownfield, Tahoka and Lamesa.
