Spring is the season of new beginnings, and it’s the ideal time to start a home improvement project. However, before you break ground, you should ensure you have adequate insurance. The changes to your home may not be covered under your current plan.  Here’s what you should know about home improvements and homeowners insurance. 

Why Improvements Affect Insurance

Homeowners insurance policies are written according to the state of the property at that particular time. Factors that affect premiums include the size, location, condition, and value of the home. Specific improvements can change the state of the property, its replacement value, and its susceptibility to risk, thus impacting monthly costs.

Updating Your Policy Before Renovating

Before you start the project, contact your Insurance Agent. Discuss what changes you’ll be making and ensure your policy offers enough coverage.

You may need to upgrade the plan or buy other forms of insurance to protect yourself in case of an accident during or after the renovations. Most homeowners insurance policies don’t cover damages that occur as a result of improvements, such as water damage caused by a burst pipe during construction.

You may want a builder’s risk policy to protect your home from damage, theft, and vandalism during the project. Ensure the contractor you’re working with has liability, workers’ compensation, and commercial business insurance as well. 

How Improvements Affect Costs

Certain projects will increase the cost of insurance coverage, while others will decrease it. For instance, installing a backyard swimming pool may increase liability risks and insurance premiums, while introducing a security system or revamping your electrical wiring can decrease risk and the cost of insurance.

Adding a room or changing the function of a space can also impact costs. For instance, if you don’t use your garage and change it to a living area, you may need to pay more due to the increased risk of injury or damage. 

If you need homeowners insurance in Lincoln, NE, turn to Omega Insurance Group LLC. This locally owned agency is comprised of a team of respected insurance agents who have over 50 years of combined experience. From health and life insurance to homeowners and business policies, they provide a range of solutions to protect you and your property. Call (402) 325-0777 to speak with a helpful staff member about how they can help you. Visit the website to learn more about their range of services.