Renovating your home is a great way to increase your home’s value and your sense of well-being.
We spend a large portion of our lives in our homes, so why not try to make yours the best version it can be?
But first, consider the effect on your homeowners insurance premiums.
Many factors can affect your ability to smoothly file a claim if something disastrous were to happen after your home renovation.
1. Square Footage
Many home upgrade projects add square footage to your home. Since part of your policy covers the square footage, any upgrade will require a policy update. This will prevent your homeowners insurance from covering less than the market value.
See how to determine the square footage of your house here.
Adding a mother-in-law unit or a new deck creates factors to cover under the policy.
Your insurer will need to know about these kinds of upgrades to make sure your policy reflects the change.
And you need to tell your agent before the project even begins — to ensure it’s able to be covered.
3. Building Materials
High-quality building materials — for instance, porcelain tiles as opposed to vinyl sheet flooring — cost more to cover than standard materials. They can raise your home’s replacement value.
So keep receipts of materials used; this will make it easy to prove the costs for your insurance agent.