Renovating your home may affect your homeowners insurance. Even minor changes can impact your home’s value and insurance premiums. Talk with your insurance provider to learn how you can improve your home and take advantage of potential discounts that will lower your premiums.
Constructing a Swimming Pool
Adding a swimming pool is one improvement that impacts the risk potential of your home. While it will increase the value of your property, your liability risk will also increase, meaning your premiums will rise. Putting up a privacy fence around the pool will lower your risk but may not affect the increased premium rates.
Creating New Floor Space
Adding more floor space to your home will increase your coverage cost. The price difference will be determined by the square footage added to the floor space and the type of space added. Whether you extend your indoor or outdoor space, you must consult your insurer to know about the changes you need to make in your coverage.
Starting a Home-based Business Office
If you convert a room into a home-based business office, you may have to purchase a Business Owner’s Policy to cover your office equipment and any liability you may add to your risk level. This will partially depend on whether or not your equipment is exclusive to your business or is also used by your family for various purposes. You may also increase the business property coverage limit in your homeowners insurance or add in-home business insurance.
Revamping Kitchen or Bath
Kitchen and bath renovations are costly because of the price of the upgraded materials that are used. The increase in your homeowners insurance premiums will depend on the type of materials that are used and the size of the revamped area.
Renovations That Can Lower Your Insurance Rates
There are a few renovations that may lower your insurance rates. Making extensive repairs to the building structure and upgrading the electrical and plumbing systems will reduce your liability risk. The same is true if you add a professionally monitored security system.
Roof Renovations or Replacements
Your roof is one of the biggest investments in your home. Repairing or replacing it is costly, but a newly replaced roof will improve your home’s value and reduce your insurance costs.
Upgrading Your Electrical and Plumbing System
If your home’s electrical system is outdated, it can increase the risk of a fire if it isn’t monitored carefully. Upgrading your electrical system will increase the value of your home and also lower the risk of a fire or other electricity-related damage. New plumbing systems also reduce water damage risks and lower insurance rates.
Installing a Security System and/or Sprinklers
Installing a security system and/or sprinklers will lower the risk of theft, vandalism, fire, and other types of liabilities. Most insurance carriers will offer discounts for as long as the system is in good working order.
Upgrading and renovating your home doesn’t have to increase your insurance. Contact our agents here at Family Financial Insurance Group today to learn how your home renovations will affect your home insurance. With our years of experience, we can help you get the most out of your insurance premiums with affordable discounts.