Why You Must Talk With Your Insurance Broker Before Starting Home Improvements
There is a lot more to home improvements than building plans and contractors. An important part of the home improvement process is to secure proper coverage and protection. You never know when something can go awry during a renovation project, especially if you are doing work on an older home. Therefore, it’s essential for homeowners to make sure they are protected during the entire home improvement process.
How Renovations Impact your Home Insurance
Home improvementsand renovations will impact your home insurance. Even though the exact way they will impact your home insurance will vary based on the type of project you are working on, there are three key ways renovations will impact your home and your home insurance policy:
- Renovations can increase your home’s value:Even though doing updates and creating unique spaces in your home is usually the main reason to do a renovation, people also do it to increase the value of their home. If your home value does increase post renovation, this means you may need to reassess your home, especially in terms of replacement value.
- Change your policy needs:Changes to your home often means changes to your home insurance policy. Adding new features, especially features that are associated with increased liability, may require you to upgrade your home insurance policy.
- Change your coverage requirements:Depending on the type of renovation you perform, you may need to change your coverage to meet new requirements. For example, if you build an income suite and rent it out, you will need to have insurance for your rental unit and notify your insurance company of the changes.
Learn more: 3 Insurance Considerations For Home Improvements
Why talk to your broker about home improvements?
As part of your planning for your home renovation or improvement project, it is important to talk with your insurance broker before getting started. Certain renovations will have an impact on your home insurance policy and your broker can help you ensure you have the proper coverage in place during and after the project is complete. Even if your project doesn’t change your home insurance, it’s good to know for sure.
Your broker will help you:
- Choose the right coverage and policy for your newly improved home
- Answer any insurance related questions you have
- Help you explore your home insurance options
- Make sure there is no lapse in your home insurance coverage during any stage or the renovation
Talk with your broker about your home insurance policy options before starting your next renovation project.