Home improvement projects can make a house more comfortable, functional, and valuable. What homeowners sometimes overlook is how those improvements can also change their insurance needs. A policy that adequately protected a home before a major renovation may not provide the same level of protection after thousands of dollars have been invested in upgrades.
Whether you are remodeling a kitchen, finishing a basement, building an addition, replacing a roof, adding an outdoor living area, or installing a swimming pool, it is a good idea to review your homeowners insurance coverage when the project is complete.
Your Home May Cost More to Rebuild
Homeowners insurance is not simply based on what you paid for your house or what it might sell for today. One of the most important considerations is the estimated cost of rebuilding the home after a major covered loss.
A renovated kitchen with custom cabinets, upgraded countertops, new flooring, and high-end appliances can significantly increase replacement costs. The same is true for additions, finished bonus rooms, upgraded bathrooms, extensive landscaping features, and outdoor kitchens.
If your dwelling coverage has not been reviewed in several years, improvements may leave you with less protection than you expect.
Some Improvements Add New Liability Risks
Certain additions can also affect liability exposure. Swimming pools, trampolines, detached workshops, fire pits, outdoor kitchens, and other recreational features may create risks that were not present when the original policy was written.
Your insurance company may need to know about these changes so the policy can be reviewed and any necessary protection added.
Renovations Can Include Expensive Personal Property
Home projects often include more than construction materials. Homeowners may also purchase new electronics, appliances, furniture, artwork, tools, or specialty equipment.
It can be helpful to update your home inventory after a major project. Photos, receipts, model numbers, and purchase records may make the claims process easier if a covered loss occurs later.
Do Not Wait Until You Have a Claim
The best time to discover that your homeowners insurance needs an update is before a loss occurs. A quick policy review can help determine whether your current limits still make sense for your home and lifestyle.
For homeowners throughout the Lake Norman and Charlotte service area, Rankin Insurance Group can help review existing coverage and identify areas that may need to be updated following a renovation.
If you have recently remodeled, added new features to your property, or are planning a major home improvement project, contact Rankin Insurance Group to discuss how the changes could affect your homeowners insurance.