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Home Renovation? Consider Your Home Insurance Plan

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Published on June 9, 2021. EST READ TIME: 3 minutes

A home provides those who live in it with love, a roof over their heads and allows for countless memories to be created in a given space. Many times, those who live within a home may choose to modify it by way of remodeling or renovating their property. This might improve the value of their home which impacts the home insurance policy they have in place. Prior to remodeling or renovating one’s home, therefore, readers are encouraged to consider the home insurance plan they have in place.

What is Home Insurance?

By purchasing home insurance, policyholders gain access to coverage in the event that they incur any losses and / or damages that take place within their residence in addition to their furnishings and other assets that they possess. Damages included under home insurance policies include those involving the residence in question’s interior, exterior as well as personal assets. Furthermore, accidents and injuries taking place inside the home or on the property are also accounted for under this form of property insurance. This, however, is dependent upon the liability coverage chosen by the policyholder. In the event that a policyholder files a claim owed to any of the previously mentioned forms of loss and / or damage, the policyholder is expected to pay a deductible to their home insurance provider. A deductible is the percent or amount of expense the insured individual is willing to pay themselves. Most home insurance policies do not provide coverage for loss or damage owing to acts of war or acts of God.

Renovating and Remodeling Your Home 

Renovating – or even remodeling a home can prove to be a great way to transform the property to reflect the owner’s taste, preferences, and comfort. Major changes made to homes have the potential to increase their value exponentially. However, changes made to a home can result in changes applicable to the home insurance policy for said home.

Ideal home insurance plans provide coverage for changes ranging from the remodeling of a kitchen to a bathroom being updated. Home insurance providers might also take into account the costs associated with construction if applicable and may charge premiums that reflect these expenses. It is important to bear in mind that coverage provided for the same will be up to date.

Any alterations that change the structure of a home are capable of changing the home insurance policy in effect. On occasion, home improvements that have the potential to increase a home’s value may render the coverage provided for the home in question insufficient thereby making the homeowner susceptible to losses. By speaking to an insurance agent responsible for managing the policy, policyholders can increase their coverage such that it is adequate to include the intended changes in a home.

Finally

Policyholders of home insurance must not shy away from reaching out to their insurance agents to understand what is and isn’t included under their plan. A number of elements including but not limited to the following influence coverage.

• Age of the home’s roof

• The neighborhood where the home is located

• Additional square footage if the home is expanded

• Newly renovated bathrooms and / kitchens may also increase the coverage required for a given home.

Disclaimer:  The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.