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Most homeowners don’t think of their insurance policy while planning a renovation, but it’s smart to keep coverage in mind. If you’re planning a major remodeling project, the changes may affect your insurance needs, which can raise or lower your rate. To learn more about how renovations can affect homeowners insurance, check out this helpful guide.

A Guide to Renovations & Homeowners Insurance

Many home improvements will boost your home’s value, which may make your current coverage inadequate and leave you vulnerable to losses. Changes like adding on a pool, increasing your living space, and installing luxury appliances and fixtures can all raise your rates. This is because you’re adding value to your home, meaning you’ll need insurers to pay out more for replacement and repair costs if you make a claim. 

homeowners insuranceSome renovations may lower your insurance rates, like putting a new roof on the house. While a new roof adds value to your home, it also significantly decreases the risk of future claims due to issues like water or storm damage. Therefore, projects like installing a new roof can save homeowners money on their premiums. 

Related Policies for Renovations

Simply updating your policy after finishing the renovation will leave you exposed while the work is being completed. Before beginning a remodeling project, consider adding dwelling under renovation coverage to your homeowners insurance to protect you from financial setbacks if something goes wrong during the construction phase of your project. 

Vacant home insurance is also smart if you’re staying elsewhere during construction. Empty homes are more vulnerable to vandalism and theft, so this form of coverage is designed to provide added protection from those and related dangers.

Lastly, your contractor should always be insured as well. Only work with professionals who possess renovation contractor insurance. If they hire subcontractors to work on your home, make sure they are also insured. A trusted contractor will always have liability, property, and workers compensation insurance.

 

If you’re looking for the right insurance package for your home, look no further than Advantage Insurers in Demorest, GA. Their talented insurance agents are dedicated to helping clients throughout Habersham and White counties find affordable coverage that includes workers’ compensation, life, auto, business, and homeowners insurance. To speak to a trustworthy agent, call (706) 754-1590. To learn more about their services or request a free quote, visit their website

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