Home remodeling projects offer many benefits. In addition to fixing structural issues and improving your home’s overall aesthetics and functionality, it can also help boost its value — which, in turn, can be favorable towards your homeowners’ insurance coverage. In today’s post, home remodeler DreamMaker Bath & Kitchen of Tyler shares insight on how remodeling can impact your homeowners’ insurance coverage.
Remodeling and Insurance Premiums
Renovations — the project itself, not the end result — can increase your home’s rebuilding cost, as well as associated risks, which can affect your homeowners’ insurance policy. Projects that involve heavy equipment or great heights can increase the risk of accidents. Construction debris, certain types of building materials, or exposed electrical wiring also involve risk of injury at a lesser degree. All of these can ultimately result in extended coverage limits and insurance premiums.
On the other hand, a renovation project — completed uneventfully — can help lower your insurance premiums. This is particularly true if the project adds features that reduce the risk of liability. For example, an interior remodeling project that involves installation of safety features in areas like the bathroom reduces the risks of injury. Therefore, it lowers the likelihood of the homeowner filing a compensation claim.
Tips on Minimizing Impact on Your Insurance Coverage
All of this may sound daunting, but it shouldn’t be. If you are concerned how your planned renovation will impact your insurance coverage, talk to your insurance provider. Their bottom line is simple — if there is assurance that steps are being taken to reduce risks, your project might not even impact your insurance coverage at all. You’ll be asked for documentation about the project, such as the project scope, contract with the remodeler, and a timeline, among other things.
This underlines the importance of hiring a remodeler that’s properly insured. At minimum, a remodeler should have general liability coverage, which covers accidental damage to property, and workers’ compensation (or “workers comp”), which covers injuries on site. An insured remodeler should have no problem providing proof of insurance, and verifying its validity should only take a phone call to their insurance provider.
Let’s Start a Conversation!
Searching for a “remodeling contractor near me“? No need — DreamMaker Bath & Kitchen of Tyler offers a wide range of professional remodeling services, including kitchen, bath and shower remodeling. To get started with a no-obligation consultation, call us at (903) 255-7111 or contact us online! We serve homeowners in Tyler, Swan, New Chapel Hill, Whitehouse and Noonday. We also serve communities in Douglas, Arp, Troup, Bullard and Flint.
