Upon deciding to remodel your home, whether to enhance its comfort, upgrade its aesthetics, or even increase its resale value, it’s essential to consider how these changes cab affect your home insurance. While remodeling can bring joy and added value to your home, it’s equally crucial to recognize the implications such renovations might have on your insurance policy.
In this post, DreamMaker Bath & Kitchen of Wilmington, a trusted local home remodeler, explains how renovations can impact your home insurance.
The Value of Your Home and Insurance Coverage
Remodeling projects can significantly increase the total replacement value of your home. Upgrades, be it a modern kitchen, an added bathroom, or an expanded living room, contribute to this increased valuation. Consequently, there arises a need to reassess your homeowner’s insurance coverage to ensure it reflects the current value of your home.
Renovations That Can Increase Home Insurance Rates
Some renovations might elevate the cost of your home insurance. Projects that add significant value to your property, such as high-end interior remodeling or home addition, can significantly increase your property’s value—and directly impact your insurance rates. This increment is due to the heightened replacement cost associated with your upgraded home. Adding a swimming pool introduces new liabilities, potentially leading to higher premium costs to accommodate for increased risks, such as accidents or injuries.
Building an Extension or Adding a Room
Expanding your home’s footprint not only requires city permits and professional contractors. It also necessitates an increase in your dwelling coverage. This coverage ensures that should anything happen to your home, your insurance will cover the costs to rebuild or repair these new spaces to their current standard.
Upgrading Your Kitchen or Bathroom
Luxurious renovations in the kitchen or bathroom, such as installing granite countertops or custom cabinetry, can substantially increase your home’s value. With these enhancements, it’s vital to communicate with your insurance provider to adjust your policy, ensuring your new investments are fully protected. You can also consult a contractor near me for assistance with the details and processes of renovation insurance coverage.
Adding Security or Enhancing Safety
Certain upgrades might lower your insurance premiums. For instance, reinforcing your roof, updating outdated electrical systems, or adding security features can make your home safer. Such improvements potentially reduce the likelihood of claims, thereby possibly qualifying you for insurance discounts.
Communication With Your Insurance Agent Is Key
Before initiating any substantial renovations, it’s advisable to consult your insurance agent. This discussion can enlighten you on whether your current policy provides adequate coverage for the forthcoming changes or if additional coverage is necessary. This precaution is especially imperative when undertaking significant structural changes or installations that could impact your liability, like swimming pools or expansive outdoor spaces.
Let’s Start a Conversation!
Whether enhancing your living space for personal enjoyment or increasing your property’s market value, DreamMaker Bath & Kitchen of Wilmington is here to help. We’ll make sure your investment remains secure throughout the process and beyond. Call us at (910) 928-2207 or complete our contact form to schedule an appointment. We serve clients in Wilmington, Cape Fear, Port City, Forest Hills or nearby areas.
