Whether you’re updating your kitchen or bathroom or adding a new room to your home, investing in interior remodeling projects not only enhances your quality of life but also significantly increases the value of your home. However, it’s essential to consider how these changes might affect your homeowners insurance policy. Let’s go over them in detail to ensure you’re making an informed decision.
Importance of Updating Your Home Insurance After a Remodel
Renovations, big or small, could lead to an increase in your home’s value. It’s crucial that this added value is reflected in your homeowners insurance policy. Without an update, you could find yourself underinsured if disaster strikes.
Renovations That Increase Home Insurance Rates
While home renovations are fantastic for your asset’s worth and daily life, it might also mean your existing insurance coverage is no longer adequate.
Features like a swimming pool or home additions could increase your policy rates. Pools, for example, add value but also pose potential risks, which could hike up your liability premiums. It’s not about discouraging these improvements but ensuring they are adequately covered.
Renovations That Could Lower Your Insurance Premiums
On the flip side, certain upgrades can make your home safer, potentially lowering your insurance costs. Upgrading electrical systems or installing a new roof can minimize the risk of damage from fires or severe weather, aspects insurers favorably consider.
Communicating With Your Insurance Agent
Before embarking on a remodel, it’s advisable to discuss your plans with your insurance agent. This conversation can clue you into whether your project will necessitate higher coverage limits or if you’ll qualify for any discounts post-renovation.
Additional Coverage During Renovations
For substantial remodels, you might need to look into additional insurance options temporarily. Builders risk insurance, for example, can cover materials and the property during construction. If you’re vacating your home while a contractor near me works their magic, consider if vacant home insurance is necessary to bridge any coverage gaps.
While the core goal of remodeling is to create a more enjoyable and functional living space, it’s pivotal to consider its implications on your homeowners insurance. By engaging with your insurance provider early and updating your policy as needed, you can secure your home as well as your peace of mind.
Let’s Start a Conversation!
Searching for a home remodeler you can trust? Look no further than DreamMaker Bath & Kitchen of Northwest Arkansas! We’re a trusted remodeling contractor in Bentonville, Rogers, Maysville, Centerton, Pea Ridge, and beyond. Call us today at (479) 579-9800 or visit our contact page to schedule an appointment!
