As you settle into your new home, you’re probably getting the itch to remodel or upgrade with home improvements. Maybe you’d like to add a deck or start upgrading with features you have been dreaming of.
Any home project comes with planning and things to consider such as how home improvement changes may affect your homeowners insurance. As a homeowner, there are numerous questions that you might have before you start remodeling your home, so we’ve compiled a few to help you get started.
What’s the Difference Between a Remodel and a Renovation?
First, Let’s talk about the difference between a home remodel and a home renovation because you will hear both mentioned throughout this information. Renovations are typically referred to when you are restoring an area of your home by replacing or repairing something with the same value of product. Let’s say your kitchen cabinets have seen some better days and you’re looking to replace them with new cabinets. A project like that might be considered a home renovation if you are replacing the cabinets with new cabinets that are of similar value. Whereas a remodel would be upgrading the cabinets giving potentially higher value to your home.
Do Home Improvements or Remodels Affect the Value of My Home?
Enhancements to your home could potentially improve and increase the value of your home, but it depends on a few things such as what sort of remodel it is and how much it’ll cost. Something to consider before beginning the project is whether the cost of the project is more than the value it may add to your home. For example, let’s say you remodel your bathroom where you upgraded the flooring, replaced the shower or tub, put in a custom built vanity and added some other features that created the must-have bathroom you’ve dreamed of. When you make a remodel like that where you replace current features with new features that have higher value, you may need your homeowners insurance coverage increased to support those wonderful new features you have in your home.
Is Insurance Coverage Affected by Home Improvements?
It can be. Some home improvements could increase the amount of coverage needed to adequately protect your home. This sometimes results in increased premiums because your home value has increased. It’s always best to report renovations to your insurer to be on the safe side. If renovations are not reported, there is the potential that your current homeowners insurance policy limits will not be high enough to cover any losses. This means that any claim filed for damage to the unreported renovation could be denied, and the insurer may have the right to cancel your policy. So protect your home, including any remodeling projects, by calling your insurer and reporting those home improvements!
How Do I Get My Home Value Reevaluated or Report a New Home Value?
Contact your homeowners insurance company as soon as your home improvement project is complete. For mobile home insurance, if you obtained your policy through us, you can contact HomeFirst® and we will talk you through the process of how to submit pictures and receipts from the renovation project so that your home value can be reevaluated for insurance purposes to make sure any increased home value is adequately insured.
Will Damage During Renovations or Remodels Be Covered by My Homeowners Policy?
Policies typically do not cover damage caused by a renovation or remodeling project. However, contact your insurance provider and let them know you are about to be doing some renovations to your home and ask about gaps in coverage. Some insurance providers might have Dwelling Under Renovation Coverage available for interior and exterior remodels for both small and extensive renovations.
Now that you have an idea of how your renovations may affect your homeowners insurance, you’re ready to make that dream project come to life! Have some fun with it and if you have any questions, feel free to give us a call at 1-800-664-9309 Monday – Friday 8:30 a.m. to 5:30 p.m. ET, we’re ready to help you today!