Spring and summer tend to be the busiest time of year for renovating a home. If you’ve decided to tackle a few improvement projects around your property in the upcoming months, it’s important to consider what impact this could have on your homeowners insurance. Many people are surprised to learn they no longer have adequate protection or are overpaying for their coverage after making upgrades. The following information provides valuable insight that will help prevent this from happening to you.

A Guide to Homeowners Insurance & Renovations 

Coverage During Construction 

Reviewing your homeowners insurance should be one of the first steps you take when planning a renovation. You may need additional coverage to safeguard you against liability and property damage while construction is going on. This is especially true if you’ll be hiring contractors to get the job done, as many things could go awry during the time they’re on your property. By adding more coverage or raising your policy limits, you can be sure you’re adequately protected. 

Increased Property Value & Liability Risk 

One of the main reasons for doing renovations is to boost property value. Should you invest in projects that make your home worth more than the amount you originally insured it for, the value of your homeowners insurance policy will need to be increased as well. If you fail to cover your property for its full value, you won’t be given all the funds you require to repair or rebuild in the event of a disaster. Additionally, some projects can increase your liability risk, including installing a hot tub or deck. Thus, you must buy more liability coverage to ensure your financial security. 

Reduced Premiums 

Making renovations doesn’t always result in higher coverage costs. Several projects can help reduce your premiums. For example, installing safety and security features, such as surveillance cameras, a fence, or smoke detectors, will lower your risk of filing a claim for theft or fire damage and may earn you a discount on your policy. This is also the case when replacing an outdated roof, HVAC system, plumbing, or electrical wiring since new products are less hazardous. 

Whether you’re preparing to make some major renovations or a few small updates, the professionals at Sweeney Insurance Agency can help ensure you’re properly protected. For more than 40 years, they’ve been entrusted to provide the residents of Kodiak, AK, with high-quality homeowners insurance at competitive rates. They’ll carefully assess your new situation to determine which coverage solutions are most suitable for your needs. Call (907) 486-3101 to request a quote, or visit them online to learn more about the services they offer.