Enhancing Your Home: How Renovations Impact Your Insurance Needs

Undertaking home additions, significant or minor renovations, or upgrading outdated systems can not only increase the value of your property but also alter your insurance requirements. Here's what you need to do to ensure you're adequately covered before, during, and after making changes to your home.

Update Your Homeowner's Policy Promptly:

Your homeowner's insurance is designed to cover your property in its original condition at the time you purchased the policy. It's crucial to inform your insurance provider about any renovations or upgrades as soon as possible. Additionally, consult your insurance company about your remodeling plans before commencing the work to confirm coverage throughout the process.

Renovation Can Lead to Savings:

While major additions may increase your insurance premium, certain upgrades could qualify you for discounts. Replacing an aging roof or upgrading outdated wiring and plumbing might result in a reduced premium. If you reside in an area susceptible to hurricanes or floods, renovating to enhance your home's weather resistance could also lead to premium reductions. Moreover, adding security features can potentially lower your premium with some insurers.

Screen Contractors and Subcontractors:

It's commonly advised to hire insured contractors, and here's why: Many states mandate contractors to provide proof of insurance for licensure, ensuring they meet minimum skill requirements. Additionally, a contractor's insurance may cover mistakes or injuries that might not be covered by your homeowner's insurance. Prioritize hiring licensed and insured contractors to avoid bearing the entire liability burden. Don't solely rely on the contractor's word; examine documents and confirm the insurance policy's duration, even if it means reaching out to the insurance company yourself.

Opt for a Bonded Contractor for Extra Assurance:

A bond functions as insurance that safeguards the customer in cases of subpar work or incomplete projects. If your project is high-risk or if you're unfamiliar with your contractor, consider requesting them to secure a surety bond.

Consider Extended Liability Coverage:

If anyone other than licensed contractors and subcontractors will assist with your renovation, such as friends or family members, you may want to increase your liability coverage while the work is ongoing. This safeguards you in the event an uninsured individual is injured during the project.

Secure Your Personal Property:

If your home renovations involve adding new items like a sound system, outdoor equipment, or expensive fixtures, consider obtaining separate coverage for these items or listing them individually on your policy. Ensure you notify your insurance agent about these new additions to protect them against theft or damage.

Taking these steps will help you navigate the insurance implications of your home improvement project and ensure that you have the right coverage in place."