It is exciting to remodel your home, and any improvement you make is likely to make your home look nicer and increase its value. When you perform home remodeling projects, did you ever think that you should notify your homeowner’s insurance company to let them know?
The projects you complete in your home could affect your policy in several different ways. Here are some things you should know about the changes that could happen with your insurance policy.
Home Improvements Increase Value
The first thing to understand about home improvements involves the effects they can have on the value of your home. If your home is currently worth $200,000 and the improvements you make result in your home’s value increasing to $250,000, you will need more home insurance after you complete the improvements.
Most types of home improvements cause an increase in the value of a home, which is why you should inform your insurance company of the changes you are making. If you do not currently have enough coverage with these improvements, you may want to increase your coverage amount.
You should also consider adding more coverage for any additional home furnishings you purchase. For example, if you put an addition on your home and must furnish it, you may need additional coverage for your personal belongings to ensure you are protected if you ever need it.
Home Improvements May Increase the Need for More Liability Coverage
The addition of certain things to your home could also increase the need for more liability coverage. The best example of a time when this occurs is when a homeowner installs a swimming pool. Swimming pools involve risks, and your home insurance company will need to know that you now have a pool.
A hot tub may have similar results as a pool has on your insurance premium, and there are other types of things you can purchase that also increase the risk you have as a homeowner. If you purchase any new type of asset for your home, you should contact your insurance company to find out if this item has any effects on your policy.
Home Improvements May Offer Discounts on Your Policy
The other thing you should know is that home improvements can result in discounts on your policy. If the projects you complete make your house safer in any way, your insurance company might offer you discounts on your policy. You must let them know that you made these improvements so they can tell you if you qualify for any new discounts.
Here are some examples of home improvements you can make that offer discounts on home insurance policies:
- Basement waterproofing – Hiring a company to waterproof your basement is another great way
to protect your home from flooding, and this proactive could help you save money on your insurance.
- Electrical system -If you replace an old, outdated electrical system, your home will be
safer, and this could result in a discount on your insurance policy.
- New roof – A new roof on a home is costly, but it also offers more protection for your
home. Insurance companies often give discounts to homeowners that install new roofs, because a new roof
decreases the risk of storm damage occurring.
- Security system – Adding a security system could amount to a 20 percent savings on your
policy. Security systems protect homes and make it harder for people to break in.
If you are not sure if the improvements you made will affect your policy, contact your insurance company.
If you are looking for a new insurance company to use for your homeowner’s insurance, contact Lanham Agency. We offer home insurance, auto insurance and many other types of insurance products.