Home Remodeling and Your Homeowner Insurance

| August 26, 2021

With more people than ever working from home, many are considering making investments to their home to include home offices or other enhancements.  It can become quite an endeavor with getting multiple bids and the current scarcity of labor and materials.  Unfortunately, many people forget about the impact home remodeling has on their homeowner insurance.  

Our partners at Frankenmuth Insurance provide some tips on the most common home improvements and what they mean for your home’s value and your insurance rates.

Building an addition.  More livable space will likely increase the value of your property and it may increase the protection you need.

Renovating your kitchen.  Before picking out finishes and starting demo, call an agent. Alert them about upcoming renovations so you’re covered if something goes wrong during construction. Upon completion, have your policy adjusted to ensure adequate replacement coverage for your newly finished custom kitchen.

Adding a pool.  Putting in a pool can mean days of fun. But it can also mean added coverage for liability, increased home value, and risk. A portion of liability coverage may already be included in your home policy, but more coverage can protect you from costly medical expenses related to accidents or injuries that happen on your property. It’s also important to note some insurance carriers do not cover pools, which may lead to a cancellation of your current policy. An agent will advise you about coverage options and additional pool safety measures, like fencing.

Adding an office for a home business.  Are you operating a hair salon, yoga studio, music class, or small business from home? Businesses, especially those with frequent foot traffic, need more coverage. Talk to an agent about what’s included in your homeowners policy and if additional coverages or a small business policy is needed to add protection and peace of mind.

Redoing your roof.  Replacing a roof is very costly. But, it’s the part of your home that prevents water and weather damage and extends protection for decades. An agent can help determine if you qualify for a discount on the renovation and share how your rates may improve with this home update.

Building a deck.  Though it’s outside your home, adding a deck can increase your home’s property value. Is your deck on the second story or higher? Talk to an agent about the details of the renovation so your policy can be adjusted for risk and value.

Generally, the adjustment for your home improvement is minimal in premium, but could be significant in the event of a loss if not properly addressed in advance.  If you have a homeowner policy with any of our companies, please contact us and we will advise you on your options. 

Source:  https://www.fmins.com/blog/does-home-insurance-cover-home-improvements/