Since the pandemic and subsequent stimulus checks, people have been spending more time and money on their homes by focusing on home updates and renovations. Below are common home renovations and how they can affect your homeowners insurance policy.
1. Building a New Addition
It is possible that the cost to rebuild your home has increased if you have built on to your home or made other improvements to the building. Typically, your homeowner’s insurance carrier requires you to cover the building for 100% of the replacement cost of your home to ensure you have enough coverage during claim time.
2. Building a Pool
Adding a pool can also increase your property’s value, but may also increase your risk in terms of liability. It is possible that if someone is hurt in the pool area, you could be brought into a lawsuit, even if the accident is not your fault. Liability coverage may pay for defense costs and medical bills for the injured person. In order to ensure that your pool is safe, you can ask your agent if there are safety requirements outlined by your insurance carrier such as adding a fence and self-locking gate, or forgoing the diving board and slide. These measures can help in avoiding an accident and reducing insurance costs.
3. Adding a Deck
Again, if you added a deck or patio to your home this can cause an increase in the value of your home. Just remember: Any addition, coverage revision!
4. Renovating the Kitchen or Bathroom
Have you swapped your laminate countertops for quartz? If you have made major updates to your kitchen or bathrooms in which you have opted for superior flooring, countertops, or appliances, this could also greatly increase your dwelling coverage. Your insurance carrier may also offer a discount if you have made recent upgrades to the plumbing, electrical, roof, or heating and air conditioning system.
5. Finishing the Basement
If you have recently finished your basement you should assume that this could affect your homeowners coverage as well. With any basement, flooding can be a concern especially since most homeowners polices specifically exclude water damage caused by flooding. A flood policy may provide coverage for rain-related and other flood damage. Furthermore, certain safety measures can be taken to prevent flooding such as checking gutters and downspouts, looking for foundation cracks, and installing window well covers or a sump pump.
6. Redoing the Roof
Replacing your roofing can again increase your property value and may qualify you for a discount when you reinforce the roof or use stronger roofing materials that are wind, hail and leak resistant.
In conclusion, in all situations, we advise you to always reach out to us here at Gunn-Mowery so we can make sure you are properly covered. We will also be able to ensure you are taking full advantage of all applicable discounts. If you have made any of the changes listed above to your home, please contact Gunn-Mowery’s personal lines department to update your Home Insurance Policy.