When planning for home renovations, always consider the impact it may have on your homeowners insurance. Travelers provides 6 scenarios that could change the amount of coverage needed or even qualify you for a discount.
- Building a New Addition – Some additions that could increase your replacement value include: adding a second-story bedroom, expanding the living room or building a new garage. After building a new addition, you may need to increase your coverage so your dwelling coverage limit is at least 80% of the replacement value of your home. Your Deeley Insurance Client Relations Agent can recalculate your home value to determine whether you’ll need more coverage because of the addition.
- Adding a Pool – If you’re looking to add a pool, you will want to contact your Client Relations Agent to review coverage for changes to your property’s value, as well as any increase in risk. When people are swimming and running around the pool, there’s the chance for an accident. If someone gets hurt, they could try to hold you responsible for damages even if the accident isn’t your fault. Check with your agent to see whether your existing policy covers a pool and if you need to increase your liability coverage. Take steps to keep your pool safe so you can avoid accidents, like adding a fence with a lock, lights with motion sensors or a pool alarm to discourage trespassers. Consider skipping the diving board.
- Building a Deck – A new deck is another improvement that can add value but also risk, especially if the deck is attached to a second story or higher. You should let your Client Relations Agent know that you’ve added a deck, so he or she can adjust your policy as necessary.
- Renovating the Kitchen – Upgrading the kitchen can significantly increase the value of your home, especially if you switch to higher-quality counter tops, appliances and new flooring. This means an increase to your insurance coverage is necessary. If your contractor upgrades the plumbing or electrical wiring as part of the renovation, ask if you qualify for a discount or if your coverage needs to be adjusted. These upgrades can reduce the chance of flooding water damage and fire, which may reduce your premium.
- Finishing the Basement – Finishing your basement can also increase the value of your home. That means, yet again, you may need more homeowners coverage. Flooding can be a concern, especially for the lowest floor in your house, so look into getting flood insurance since homeowners coverage does not cover damages caused by floods. Installing a sump pump is always a good idea.
- Redoing the Roof – Before you redo your roof, ask your Client Relations Agent whether this could qualify for a discount. Some companies offer a discount when you reinforce the roof or use stronger roofing materials that are wind, hail and leak-resistant. At the same time, redoing the roof could increase your property value, which means you might need more coverage.
It is always a good idea to review your homeowners coverage when you’re considering making home renovations. Be sure your home is adequately insured (and that you’re receiving the best available discounts).
For more information, read the full Travelers article here. Contact us today with any questions – 410.213.5600!
