Experts tells us that the average homeowner moves into a new residence every 7 years. During a down market, however, homeowners often choose to renovate their home instead. The decision allows for stability and the ability stay in a home you love, while updating it to meet your current requirements. Home renovations may be required when there is a new baby coming home, or an adult child leaving the nest. You may wish to add a bathroom, some closet space, or an additional room above the garage. You may finally be ready to build your dream deck or gourmet kitchen. Whatever the reason for your remodeling project, you’ll want to call your insurance provider first.
This may be surprising to you, but the fact is that home remodeling can either compromise or significantly impact your insurance policy. When doing a cost analysis of your project, you will have to factor in any additional costs associated with the changes to your home – or you may be pleasantly surprised to learn of premium reductions! Simply put, your insurance provider needs to have a comprehensive knowledge of what they are covering. If they do not, you may find yourself without coverage if the unthinkable occurs.
Here are some additional points regarding remodeling and home insurance that you may not have considered:
- When you hire a contractor, you should always make sure that they have adequate insurance to cover any potential damage to your home which occurs during the project; as well as to cover their employees should they be injured on your property. Still, if you are undertaking a particularly large construction effort, you may wish to add your own additional insurance temporarily. Your insurance advisor can discuss your options with you.
- You may wish to consider the purchase of additional insurance for your personal possessions. Check with your insurance adviser as to if your current policy covers possessions during construction projects, and protect yourself accordingly.
- Most remodeling projects are completed in steps, and your insurance company should be aware of what is happening every step of the way. You do not want to find out that you are not covered properly if your bathroom renovation turns into a flood, or your roof remodel reveals hazardous materials.
Remodeling Projects Which Reduce your Premiums
Many remodeling projects can actually help you to reduce your ongoing premiums. In the Sarasota and Bradenton area, these projects are typically tied to protecting your home against windstorm damage – but not always. Replacing an aging roof will have a significant impact on your premiums, as will installing new hurricane grade windows. Adding a security system or hurricane shutters will help with your monthly bills, and additional protections around a swimming pool should always be reported to your agent. Any remodeling project which reinforces the safety of your home and property is likely to have a positive effect on your insurance premiums.
As a general rule, it is always prudent to keep your insurance agent apprised of any major home changes. Remember, a good insurance agent is dedicated to making sure that your risk as a homeowner is as minimal as possible. If you’ve obtained insurance from a reputable local broker such as Anderson & Associates Insurance Group, you can count on your agent to assist you in navigating remodeling and renovation without fear of lack of coverage.
