Home renovations can impact your rates, coverage limits, and may require additional coverage to ensure you’re fully protected. With all the stress of renovating or rebuilding, you should also consider the potential impact it may have on your homeowners insurance. This way you will be protected during your project from beginning to end.
Once you’ve completed your project, you may need to update your policy to reflect any changes to your home’s replacement value. In the event of a disaster, this will ensure you have the proper amount to fully rebuild if needed.
Renovations that can impact your home insurance
The larger renovation projects will adjust how much it costs to rebuild your home. It’s important to notify your insurance company as you renovate so they can adjust these limits as the project progresses. They may recalculate the dwelling coverage limit after everything is complete.
1. Home addition
If you are adding onto your home, for example a larger garage, you are likely increasing the replacement value. Due to this, your insurance company will increase your policy’s dwelling coverage limit to reflect this.
This may increase your insurance premiums. However, it’s important to notify your insurance company so you would have enough money for a full rebuild if needed.
2. Kitchen renovations
This is one of the most popular renovations that we see. Upgrading your kitchen and the appliances can significantly increase the rebuild value of your home. If you’re installing marble countertops, brand new cabinetry, flooring, appliances, etc. you will want the limits on your home insurance policy to be updated. We want to make sure that you will be fully reimbursed if a disaster were to occur.
3. Replacing your roof
If you plan on replacing your roof, or are being forced to replace your roof due to a hailstorm, be sure to contact your insurance company prior. A new roof adds value to your home. Your coverage limits will then be recalculated and you might even be offered a discount depending on the company you have home insurance through. If your roof is newer or is made of stronger material to withstand hailstorms, wind, etc. you will most likely qualify for a discount.
4. Installing a pool
Pools can increase your rebuild cost, but on the other hand they can also be a liability hazard. If someone were to get injured in a pool-related incident and decided to press charges, you will most likely be responsible for paying for the damages. So if you’re adding a pool, check with your insurer to clarify that it’s covered in the liability section of your policy.
Get in touch to discuss your home insurance
When you work with IBC, we will recommend the insurance you will need and the limits that would be best for your situation. There are several types of coverage you may need during the renovation process, but leave it to us, the experts, to take care of this for you. At IBC, we’re are more than insurance. Give us a call today at 712-277-2424 or visit ibcins.biz.
