In 2022, Americans were estimated to spend $427 billion on home improvement projects with maximum projects dedicated to kitchen renovations and bathroom remodeling. If you, too, have renovated your home, an important aspect that you must not overlook is your homeowner insurance coverage.
Your home is your most important investment and asset and securing it from all eventualities results in better financial security for you and your family. This blog reminds you to update your homeowners insurance coverage to align with the new insurance requirements post-renovation. Let’s see how!
If you have made significant changes to your home, you must ensure that the new additions are reflected in your homeowners insurance. It would be best if you informed your insurance provider about the home improvements you have made so that they can assess the modified needs of your home and make necessary adjustments in your coverages to cover the additions fully.
Failure to update your homeowners insurance coverage may lead to severe financial setbacks when faced with loss or damage to your home, as the coverage types and limits in your existing homeowners insurance may not offer adequate protection for your renovated home. It is because with increasing labor and material prices in renovation projects, the replacement value of the renovated areas multiplies manifold. Without updated insurance, your reimbursement may considerably fall short of your actual expense.
While you may expect your homeowners insurance premiums to increase after a home improvement project, you may be pleasantly surprised to learn that certain renovations reduce your premiums. Let’s see what they are:
Replacing an old roof with a more advanced and efficient roofing system increases your home’s value and lowers your insurance rates.
Installing fire sprinklers or fire alarms, burglar alarms, deadbolts, or advanced home monitoring security systems can earn you a discounted insurance rate.
Revamping the plumbing and electrical systems and installing a new HVAC system greatly reduces the risk factor, thus leading to reduced premium rates.
Make your home techno-smart with highly advanced devices such as smart locks, gas leaks, water leaks, or freezing pipe sensors. They minimize your risks and maximize your discounts.
Certain home improvements, such as adding a swimming pool or a gym in your home may lead to higher liability risks. To ensure you have the proper protection, you may need to increase your liability coverage limit to include the added risks. Inadequate liability coverage may result in severe losses, especially in the event of expensive lawsuits.
At Humble Insurance Group, tour professionals know the benefits you can get from home improvements and the added protection needed in your homeowners insurance coverage. We can help you get the right coverage at the best rates. Contact us today to get started.