Does Homeowners’ Insurance Cover Home Improvements? Yes. However, if you want to renovate your home, you should call your insurance agency because this decision can affect your homeowners’ insurance.
Check Collected.Reviews for what to be abreast of homeowners’ insurance entails. Homeowners’ insurance coverage pays for the reconstruction of your home or the repair of your home on the condition that the cause of the damage is a covered hazard.
Here are some cases that can affect your insurance.
1. Building a New Addition:
When you increase the size or improve your home, you are also increasing its replacement value. Examples of such additions are: building a new garage and expanding your bedroom. After upgrading your home by building a new addition, you will need to increase your coverage because the value and cost to rebuild your home would have increased. Your home’s value will be recalculated to determine if you will need more coverage.
2. Building a Pool:
If you want to add a pool, contact your insurance agent for any increase in risk as well as the property value. You can be held responsible if there is an accident involving swimming or running around your pool,even if the accident is not from you. If your existing policy does not cover a pool, you might need to increase your liability coverage. This coverage will help provide you with a defense if you get sued and pay damages to injured persons.
3. Finishing the Basement:
The value of your home can also be increased by finishing the basement. This means more homeowners’ coverage is needed. Note that damages covered by a flood are not covered by a lot of homeowners’ insurance policies. You will need to review your coverage with your agent to see if you can take any steps to prevent damage in the future. One way to prevent future damage is by installing a sump pump.
4. Redoing the Roof:
Ask your insurance agent if this could qualify as a discount before you redo the roof. Some companies give discounts if you use stronger materials that are resistant to wind, shield, and leak. Your agent can also put you through the process. On the other hand, redoing the roof can also increase the value of the property. This means that you might need more coverage.
5. Renovating the Kitchen:
Renovating your kitchen can increase the value of your home significantly. Especially when there are new appliances and flooring. You might need to increase your insurance coverage.You would have to contact your insurance agent, just to be sure. Your contractor might upgrade the plumbing or electrical wiring as a part of the renovation.These upgrades can decrease the probability of flooding, water damage, and fire. Contact your insurance agent to ask if you can get a discount to assist in reducing your premium.
Whenever you are thinking of renovating your home, it is never a bad idea to contact your agent. They will help you make the most out of discounts as well as insure your home adequately.