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How Remodeling Can Impact Your Home Insurance



Undertaking a home remodeling project can be an exciting venture for any homeowner. Whether you’re looking to add space or build that dream outdoor living area, renovations can significantly enhance the quality and value of your home. However, amidst the planning and execution of these renovations, it’s crucial to consider how these changes could affect your home insurance.

Read on as DreamMaker Bath & Kitchen of Ogden, your trusted local home remodeler, shares what you need to know about this topic.

Understanding Value and Coverage Needs

Remodeling projects often increase the value of your home, which is a positive outcome for any homeowner. This value addition, though, means your existing home insurance coverage might no longer suffice. 

For instance, if you’ve added a state-of-the-art kitchen or an additional bedroom, the cost to rebuild your home in case of a disaster could be higher than what your current policy covers. Therefore, it’s essential to assess and update your insurance policy post-renovation to ensure your new home value is fully protected.

Renovations That Affect Insurance Premiums

Certain renovations can have a direct impact on your insurance premiums. For example, adding amenities that are considered liability risks, such as swimming pools, can increase your premiums due to higher liability coverage needs. On the other hand, renovations that enhance the safety and durability of your home, such as roof upgrades or new wiring, could potentially lower your premiums by reducing the risk of damage.

Coverage During and After Renovation

Before starting interior remodeling or any renovation project, consult your insurance agent or company. Some renovations might require you to adjust your homeowners’ policy or purchase a builder’s risk policy to ensure the construction phase is also covered. After completion, a reassessment of your home’s value and a policy update will be necessary to ensure full coverage. 

Inform Your Insurance Provider

Communication with your insurance provider before and after renovations is necessary. This ensures that you have the appropriate coverage during the process and adjustments can be made to reflect changes in your home’s value and risk profile post-renovation. Taking the time to inform your insurer about your renovation plans can save you from potential underinsurance issues in case of a claim.

Contractor Insurance Verification

When hiring a contractor for your renovation project, verify that they have adequate insurance coverage, including liability and workers’ compensation. This step is crucial to protect yourself against potential damage or injuries that could occur on your property during the renovations. Ensuring your contractors are well-insured contributes to a smoother renovation process and adds an extra layer of protection for your home improvement investment.

Let’s Start a Conversation!

Looking for a contractor near me to help you remodel your home and maximize your insurance benefits? DreamMaker Bath & Kitchen of Ogden is here to help. Call (801) 614-7263 or fill out our contact form to schedule an appointment. We proudly serve North Ogden, Plain City, West Point, Millcreek, Riverdale, and nearby areas.

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