For the vast majority of Americans, their home is their most valuable asset by far. Your house is not just the place where you live, it is your greatest investment and vital source of security for you and your family. That is why you need homeowners insurance.
While it is likely that you already have some form of home insurance, it is important to note that this may not cover everything. This is especially true if you are planning to renovate or remodel your home.
Home remodeling and home insurance are both essential ways to increase the value and security of your most important asset.
Should you choose to make any changes to your property, it is important to know that doing so will likely affect your insurance coverage and what is needed.
With that in mind, here are the ways in which home remodeling can affect your home insurance.
1. Home Insurance During Home Remodeling
When approaching any home design project, it is worth noting that you will want to be covered throughout the duration of the project.
It is possible that your existing insurance policy does not afford you the coverage you might need in this situation. When remodeling your home, there are a number of additional risks that need to be covered.
Vandals or thieves might try and steal construction materials. Your existing property could be damaged during the remodel.
Bad weather could damage your materials and construction efforts. With the right insurance, all of these possibilities can be covered.
2. Ensuring Contractor Liability
With any house design project, you will likely be using a contractor to complete the work that you do not have the skills or resources to do yourself.
However, it is important that the contractor you choose does not end up saddling you with risk and loss. While most reputable contractors will carry their own liability insurance, this is not always the case.
If neither party has liability insurance, you will be left on the hook if the contractor causes damage to your property or does not finish the job.
Always ensure that there is full contractor liability insurance in place for the duration of a project.
3. Insuring New Assets on Your Property
When making housing changes to your property, you are essentially adding new assets to your existing ones. Let’s say you are building a guesthouse, or a pool, or a rec room.
These new features may not be covered by your old insurance policy that was taken out prior to construction.
Fortunately, these can easily be covered by obtaining homeowners insurance that offers full Other Structures Coverage.
This will guarantee that all additional structures on your property are fully insured.
4. Reducing Your Home Insurance by Remodeling
Finally, if you remodel your house, then you might even notice that the cost of your home insurance goes down. Virtually every insurance company will offer incentives for customers who make any improvements to their property that may reduce the risk of damage or theft.
If you are upgrading the quality of your home or adding some security, you should notify your insurance company immediately.
If they do not offer to reduce your policy cost as a result of these improvements, consider finding an insurance company that will.
Money-Saving Remodeling Tips for You
Home remodeling and home insurance go hand-in-hand.
When remodeling your home, it is important to make the kind of informed decisions that will help keep costs down in both the short-term and long-term. For this, we have got you covered.
Make sure to check out our DIY Remodeling guides today for expert home decor hacks that will save you time, stress, and money.
