If you’re a homeowner, you’ve probably heard a lot about how much a home improvement can enhance the value of your home. The increase in value a home improvement can bring is great for resale, refinancing or even getting a home equity loan. What people sometimes don’t realize, though, is that home improvements have an impact on your overall insurance picture, as well.
The good news is that renovations and home improvements will normally be covered by your insurance. The bad news is that they will usually only be covered if your insurance company knows about them. Minor remodeling work is often covered by homeowners insurance policies, but bigger projects are not without notification. Basically, if the renovations are significant enough to affect the value of your home, you should notify your insurance agent so that they can adjust the value of your policy to reflect the changes. Here’s the second piece of bad news–as the value of your policy goes up, so does your premium, so a home improvement might cost you a bit more than you think.
Home improvements make your home more comfortable to live in and they can make the home worth more money, too. The trick is to keep your insurance company informed when improvements take place so that your coverage is sufficient to cover the new value of your home. If you have questions about homeowners insurance or if you would just like to visit our website to compare quotes, we are the independent agent who can get you the information you need to make the right decisions about coverage for your home.