How Home Renovations Affect Insurance
Tuesday, July 3, 2012
In Spring and Summer, many homeowners will want to revamp those old projects or remodeling ideas that they might have. Statistics show that home renovations can be costly; however, they can sometimes increase the value of a home.
Whatever time of year, homeowners should check with their insurance provider to make sure their home insurance coverage will remain intact during the renovation period and after the renovations have been made.
Insurance companies may be interested to know about home renovations as this may affect your policy.
Factors that may affect your policy include:
- Renovations can increase the value of your home.
- Liability: Workers (such as builders or construction personnel) working on your property – you may be liable for any injuries that they may suffer.
- Vacating your home may leave you un-insured (most insurance policies exist for when tenants are occupying the home).
- Remodelling the home may change the pre-existing coverage and will need to be updated to ensure all new additions are covered.
Insurance policies may even cover building materials while renovations are being made. Photographs made be required to show pre and post renovation additions. Once renovations have been completed, insurance premiums may increase or decrease depending on what specifically was done.
If renovations increase the value of your home, you will want that to be reflected in your insurance policy. Instead of being covered for a $200,000 home, you may now need coverage to insure a $300,000 home. Or on the flip side, renovations to remove mold or dangerous items such as asbestos might actually decrease your insurance premiums.