If you are considering home remodeling, you should consult with your home insurance agent first because this decision may affect your homeowners' insurance. Some home improvements will modify the amount of coverage you require, while others may possibly qualify you for a discount. So you can plan ahead, we explore six possible circumstances that could affect your insurance.
1. Constructing a New Addition
You may be able to boost the replacement value of your home if you expand and upgrade it. This is the price of repairing or rebuilding your home. Adding a second-story bedroom, enlarging the living room, or building a new garage are some upgrades that could increase your replacement value.
After adding a new addition, making renovations, or making other improvements to your house, you may need to increase your coverage because the value of your property and the cost to rebuild it will most likely have increased. Most insurance providers require that your Coverage A or dwelling coverage maximum be at least 80% of your home's replacement value.
At Retcho Agency, we can recalculate your home value to determine whether you'll need more coverage because of the addition or improvement.
2. Pool Construction
If you plan to install a pool, call your home insurance agent to examine coverage for changes in your property's value as well as any increase in risk. Accidents are possible when people are swimming and running around the pool. If someone is injured, they may try to hold you liable for the damages. This is true even if the mishap was not your fault.
Check with your home insurance agent to discover if your current policy includes a pool and if your liability coverage has to be increased or if you need an additional policy such as an umbrella insurance. This coverage can assist in compensating injured people and providing a defense if you are sued as a result of their injuries.
You can also ask your home insurance agent what precautions you can take to make your pool safe and prevent accidents. Putting up a fence with a lock is a wise decision. To deter trespassers, you may also install motion-sensor lights or a pool alarm. Consider bypassing the diving board because it raises the likelihood of an accident and the cost of your insurance. Depending on your insurance carrier, you may have certain requirements, such as closed fences, and even have certain restrictions on amenities such as slides or diving boards.
3. Include a Deck
A new deck is another enhancement that can add value but also risk, particularly if it is tied to a second or higher story. You should notify your home insurance agent that you've added a deck so that he or she can update your coverage as needed.
4. Kitchen Renovation
Remodeling your kitchen may greatly raise the value of your property, particularly if you use higher-quality countertops, appliances, and flooring. You should check with your insurance agent to see whether you need to boost your coverage.
Ask your home insurance agent if you qualify for a discount or if your coverage has to be altered if your contractor updates the plumbing or electrical wiring as part of the remodeling. These improvements can minimize the likelihood of flooding, water damage, and fire, so see if your insurance carrier offers incentives that can help you lower your premium.
5. Basement Finishing
Finishing your basement can also increase the value of your home. That means, yet again, you may need more homeowners coverage. Flooding can be a problem, especially on the ground floor of your home. It is crucial to understand that most homeowner insurance policies do not cover flood damage. Ask your home insurance agent to review your coverage and look to see if there are steps you can take to help prevent future damage, like installing a sump pump.
6. Roof Replacement
Before you replace your roof, check with your home insurance agent to see whether you qualify for a discount. Some providers may give you a discount if you reinforce your roof or use better roofing materials that are resistant to wind, hail, and leaks. Your home insurance agent will be able to explain how to qualify. At the same time, replacing the roof may enhance the value of your home, which means you may require extra insurance.
When considering home improvements, call Retcho Agency to obtain a home insurance quotation. Our experience and expertise can assist you in getting the most of your discounts while also ensuring that your house is suitably insured.