Home remodeling can be a wonderful investment, yet despite the many benefits of home remodels, some homeowners are reluctant to take the plunge because they’re afraid the improvements will negatively impact their insurance premiums. If this is a concern of yours, it pays to know exactly what kind of remodeling work could affect your insurance cost.
- Building a pool – Installing a pool in your home can affect your insurance premiums in two ways: on one hand, it can increase your property’s rebuild value, but on the other, it can also be a liability hazard. If a guest suffers a pool-related injury, you might be responsible for paying out damages. If you want your policy to cover such accidents, your insurer might require a gated fence be installed around your pool’s exterior prior extending coverage.
- Home additions – If you intend to add onto your home, home renovation contractors strongly recommend that you inform your insurer of the changes. You’ll likely be increasing the home’s replacement value or the cost to repair or replace your property, which is indicated in your policy’s dwelling limit coverage. If you add onto your home, chances are this limit will increase alongside your premiums once the coverage is adjusted by your provider. If you fail to inform your insurance company of the addition, a future claim could be denied as you won’t be meeting the coverage limit threshold.
- Kitchen renovations – A kitchen remodel can significantly increase your home’s overall rebuild value and as such, you’ll want your policy’s dwelling limits and premiums to be updated. Otherwise, you won’t be fully reimbursed by an insurance claim should your home ever be involved in a disaster.
- Roof Replacement – A roof replacement can affect your insurance premiums to your benefit. If you replace the roof, your insurance provider could discount your policy by up to 20 percent, saving you hundreds of dollars a year.
Let’s Start a Conversation!
Planning a home remodel? Consider DreamMaker Bath & Kitchen of Wilmington, the local professionals to turn to when it comes to interior remodeling, closet design and more. Give us a call at (910) 212-5889 or fill out our contact form to start a conversation today! We serve homeowners in Wilmington and surrounding communities, including Cape Fear, New Hanover, Landfall, Ogden, Wrightsville Beach, Marsh Oaks and Porters Neck.
