BY SOLO INSURANCE®

When planning to remodel part of your home, where does your home insurance fit in the picture? Or are you about to build a new addition onto the dwelling? In both cases, did you know your home insurance is impacted? That’s right. You need to consider the impact the changes will have on your home insurance policy. You need to make sure that you’re protected during the project and that you’re covered, as you expect, when you’re done. Don’t miss this very important part of your home remodel. It requires some attention to detail.

Can a Home Remodel Change Your Home Insurance Rates?

Remodeling your home will impact the cost of your homeowners insurance. In some cases, it will increase your rates, but in others it might cause your rates to drop.

Commonly, making significant upgrades to the home will increase the value of your property. This means, it takes more expenditure by the home insurance company to cover any damage that your home sustains in the future. Therefore, you want to make sure you’re covered during the remodel and when done. You might have to buy more coverage, which will up your premiums.

Additionally, you might see increased rates if you add features to the home that make it more of a liability. For example, installing a swimming pool or elevated deck could significantly increase the risk of someone getting hurt in your home. Therefore, your rates might rise because your home remodel impacts your home value.

Still, if home upgrades increase the safety features in the home, then you might see your rates decrease. After all, the safer the home, the lower your risk might be of filing a home insurance claim. For example, if you re-wire the home, install a security system or re-structure your roof, you will make the home better able to withstand damaging hazards. Therefore, your rates might drop.

Do You Need Coverage During Construction?

While a remodeling project is ongoing, your homeowners insurance needs to change with the course of construction.

On one hand, for small, do-it-yourself projects, your existing home insurance coverage could be adequate. However, if you’re making major structural changes, you may need to acquire a builder’s risk policy or course of construction policy. This gives you coverage for damage that occurs during construction, such as from hazards like weather, fire or theft.

If you use a licensed, bonded, and insured contractor, then they should carry the appropriate builder’s risk insurance. But you should verify that they have what you need with your own insurance agent. For do-it-yourself projects, you’ll need to get any extra insurance on your own.

What Do You Do After Construction?

Communicate with your agent. Let them know what you’ve updated to your home. The value of your home may be higher now. Remember, too, after you finish your remodeling project, keep photos of the work and all receipts to support any future insurance claims. If you haven’t already, notify your?home insurance?company about the improvements you’ve made in case you need to make any adjustments to your policy.

🚗  -----  🚗  -----  🚗  -----  🚗  -----  🚗  -----  🚗  -----  🚗
Solo Insurance® where great rates and personalized service meet.   – Veteran/Family owned since 1994 –
We shop the rates for you upfront and at renewals to ensure you get our best rate every time.
Solo Insurance® ~ 800-207-7656 ~ Soloinsurance.net ~ Get a car insurance Quote here ~ Like us on Facebook
Over 30 years in business helping people navigate car insurance with top insurance carriers,
because at Solo, you’re a person, not a policy.