Whether you are making minor upgrades to the bathroom or major ones in your kitchen, keep your homeowners insurance company in the loop. Any changes you make to your home will alter its value and claim risk. Discussing these changes with your agent before and after the renovations are complete will ensure you are getting the best protection and rates. 

How Will Remodeling Affect Your Home Insurance?

1. Render the Coverage Inadequate

A homeowners insurance policy is primarily based on the square footage of the property and how much it would cost to rebuild it if a disaster happens. Adding extra footage or upgrading interior fixtures and materials without updating your policy could leave some or all of your home at risk if it is damaged by a storm, busted pipe, fire, or vandalism.

Keep the receipts for all materials used so you can go over the changes with your agent to determine how your coverage should change. 

2. Lower Rates

Failing roofs, old plumbing, and outdated electrical systems are the most common source for insurance claims each year. Updating these features makes your home less of a risk to your insurance company. As a result, you can likely end up paying less for your premium once the updates are completed. 

When making changes to these essential areas, consider specific upgrades that will protect your home from climate-related risks. For instance, if tornadoes are common in your area, shingles with a high wind-resistance rating could earn you a bigger discount.

3. Require an Additional Policy

A standard insurance policy may not cover certain changes or installations in and around your home. Adding a pool or deck to your back yard will often require raising your liability coverage to protect against possible injuries that could result in medical and legal expenses. 

Also, adding any structures, like a shed, greenhouse, or carport, that are not physically connected to your home will require an additional unattached policy. However, if these additions are for commercial purposes, your homeowners insurance won’t cover any damages, and you will need a specific business insurance policy to protect these assets.

When you are thinking about renovating all or part of your property, contact Robert Taylor Insurance about the best coverage for the changes. Since 1988, this agency has provided personalized auto, commercial, and homeowners insurance to those in Loraine, OH. Their experienced agents will carefully go over your situation to help you get the best policies. Visit their website to learn more about their insurance options and call them today at (440) 277-5191 to receive a free quote.