Home renovations? You may need to make changes to your insurance


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Any homeowner considering an upgrade should know how it might affect their insurance coverage.

Key points

  • Many homeowners will renovate or upgrade their property at some point in their lives.
  • This can affect home insurance costs.
  • Sometimes insurance costs less, while in other circumstances owners may need more coverage.

Every homeowner needs the right home insurance policy. Homes are a valuable asset, and having the right protection in place can protect homeowners from catastrophic financial loss if a covered disaster occurs.

Sometimes homeowners buy insurance and then decide to make improvements or renovations to their home. In these circumstances, it is important to modify the home insurance coverage as needed.

Here’s why homeowners should let their insurers know as soon as possible if changes are made to their property.

Home upgrades or renovations may change premium costs

Homeowners should alert their insurer of improvements and renovations made to their home. In some cases, the changes they make to their property could have a favorable effect on their insurance premiums.

Say, for example, a homeowner installs a new roof on the property or upgrades hurricane-resistant windows. Either of these upgrades could reduce the risk of losses. As a result, they may entitle the owner to discounts on their home insurance premiums.

There’s no reason to pay more than necessary for adequate coverage, so it’s worth reporting all upgrades to an insurer to avoid unnecessarily high premiums when a home renovation lowers the cost of insurance .

Upgrades or renovations may also require a change in coverage

In other circumstances, a home renovation or remodel might necessitate a change of coverage to ensure the homeowner is still fully protected against loss.

Suppose, for example, that a homeowner makes the kind of major changes that increase the cost of rebuilding their home. Or they could add to the house in a way that increases the value of the home. In these circumstances, the owner may need to upgrade the maximum amount of coverage they have available for their property.

If a homeowner doesn’t act on renovations that add to the value — and replacement cost — of their home, their coverage limits may be too low. The insurer would not be aware that the house is now worth more, and the policy limits would be based on the pre-renovation value. If the property was destroyed, the owners would not be able to rebuild it and restore it to its current quality if they had not added additional cover in those circumstances.

Likewise, an owner could make changes that require more liability coverage. If they add a pool or an outbuilding, for example, it could create additional risk and they may have to pay more for their liability protection or increase their liability coverage limits.

Don’t be afraid to report changes

Adding additional coverage usually means premiums go up. Although this can be disappointing and some owners are unwilling to report changes if they fear their insurance costs will increase, it is still important to alert insurers of upgrades and make any necessary changes. to a font. It is far better to pay slightly higher premiums to have the right cover in place than to fail to report renovations and end up with significant losses if something goes wrong.

For all of these reasons, any homeowner who makes changes to their home should contact their insurance company as soon as possible. Failure to do so could be a huge financial mistake that comes back to haunt them in the end.

Choosing the right home insurance to protect you

No matter where you live, insuring your home is essential to protect your finances in the event of an unforeseen incident. Whether it’s a natural disaster, accident, burglary, or something that causes damage to your property, you want to know that you have the right home insurance coverage for your situation.


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