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A home addition is a way to expand your dwelling to accommodate your growing family. However, additions can impact your homeowners insurance, which is why you should always update your policy before making any significant changes. Below are a few coverage areas to strengthen. 

3 Reasons to Update Your Insurance After Building a Home Addition

Construction

A home addition means the presence of construction professionals. During any renovation project, there is a risk of injury. In some cases, you could be liable if it can be proven you were negligent or careless in some respect. While home insurance does include liability coverage, you may want to increase limits to cover added risks.

Square Footage 

Homeowners InsuranceWhen determining insurance premiums, the square footage of the home is used to calculate the cost. It stands to reason that adding on to the square footage with a room addition will also affect premiums. If you don’t report changes to your insurance company, coverage may not be sufficient when it comes time to make a claim. 

Flooding 

If you choose to renovate a basement instead of adding a new room, you’ll be able to sidestep concerns about increasing square footage. However, you will need to think about implementing a flood policy to protect the renovated space, depending on where you live. Certain types of water damage are not covered by traditional homeowners insurance policies unless the cause is a burst or damaged pipe. Because flooding is more likely to impact the basement, you want to speak with an agent about adding on this coverage.

 

With more than four decades of experience, Financial Strategies Group can answer any questions you may have about your homeowners insurance policy. They offer a wide range of essential insurance products, including health, renters, auto, and business coverage. Contact one of two convenient Missouri locations today; call (417) 777-3000 to reach a representative in Bolivar, or (417) 754-8377 to speak to someone in Humansville. You can also learn more about their full range of services by visiting the website.

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