There is a lot of planning that goes into renovating a home. Long before you start working on the project, you need to have a clear idea of what you are trying to achieve through the renovation project.
But before you start thinking about the color of the walls, or the size of the rooms, it is recommended to take into consideration the role that your homeowners insurance has to play.
Yes, that’s right! A lot of people forget to mention their insurance company on the to-do list during remodeling when in reality, this is the time when you should be thinking of making a call to your Florida home insurance company.
In this article, we will discuss why it is important for homeowners to inform their insurance companies about the renovation project and whether they need to make any changes once the project is complete.
1. Coverage
Some insurance companies require you to inform them before you carry out your home renovation project which means in case you fail to do so, the insuring company might void your policy.
This means that you will not be able to claim for any damages that have taken place over the course of the project.
Hence, to ensure proper coverage, it is essential to ensure that the insurance company is aware of the changes that you are planning to make.
Other than that, also ask your insurance company how much coverage your policy allows and whether you need to change your insurance policy before the renovation project for more coverage or not.
2. Unexpected Circumstances
During the project, you might be surprised by new findings. This usually occurs in cases where the work is being done in an old home.
When remodeling such houses, you could expect yourself to run into poor wiring, plumbing or other issues that need coverage. Hence, having the support of your insurance company will prevent any difficulty that you might encounter while remodeling.
3. Avoidance of Nullification
In case you are planning to move out while the renovation is going on you should ask your insurance company if there are any risks associated with the act of vacating your house.
This is because some policies require the homeowner to occupy the home. Hence, you need first to ascertain that your policy allows you to leave home for longer periods of time.
4. Effect of Renovations on the Insurance Policy
Once the renovations are complete, the replacement value of your house is expected to change. Hence, it is imperative that you ask the insurance company to reevaluate your home’s insurance needs.
You should include your new furnishings or any recent installations that you have made. If you have increased the security of your home by installing a sophisticated alarm system or have in any way reduced the risk of damage from fire or water you might be eligible for a premium discount.
Conclusion
Many homeowners underestimate the importance of contacting their insurance companies during a renovation or remodeling case.
However, as mentioned above, it is essential to make sure that your insurance company is on the same page with you while you are carrying out such a project.
