Are you planning a home renovation project? Renovating your home is exciting, but consider how changes may impact your insurance. This article discusses how remodelling your home can affect your insurance.
One risk is during the construction process. Another is changes in your property’s value. You may also need to make adjustments to your homeowner’s insurance policy.
1. Construction Risks and Coverage
One of the primary concerns during home renovations is the risk of damage to your property. Construction work can lead to accidents such as fires, water damage, or structural issues.
Ensuring that your insurance policy covers these risks is crucial. Review your current policy or consult with us to understand if you need additional coverage during the renovation period. For example, Builder’s Risk Insurance can protect your home and materials during construction.
2. Increased Property Value
A significant benefit of home renovations is the potential increase in property value. Whether adding a new room, upgrading your kitchen, or enhancing your outdoor space, these improvements can raise the value of your home.
Homeowner’s insurance relies on rebuilding costs. Updating your policy to reflect any changes in your home’s value is important. If your insurance company doesn’t know about renovations, it won’t cover the cost of rebuilding with the updates.
Check that your insurance coverage matches the value of your property. This will ensure that you receive proper reimbursement in case of damage or loss.
3. Updates to Homeowners Insurance Policies
As you renovate and upgrade your home, your insurance needs may evolve. Contact us about the changes you’ve made, such as installing a new security system, upgrading electrical or plumbing systems, or adding a swimming pool or detached structure. These updates may qualify you for discounts or require adjustments to your policy for optimal protection.
In conclusion, while home renovations can improve your living space and increase property value, they also come with essential insurance considerations that should not be overlooked. Take proactive steps to review and update your insurance protection with us during and after the renovation to protect your investment and enjoy peace of mind in your upgraded home.
At NIB, we do more than sell insurance – we are your partners in protection. The next time you wonder about protection, claims, or settlements, remember that your trusted broker is just a call away, ready to navigate the complexities of insurance alongside you. Contact us or call 705-949-6555 to get started!