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Renovations And Homeowners Insurance: What Changes Require Policy Updates?

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Home renovations are an exciting time for homeowners. Whether you're upgrading your kitchen, adding an extra room, or improving your outdoor living space, renovations can enhance your living experience and increase the value of your property.

However, it's crucial not to overlook the impact renovations can have on your homeowners insurance. Certain changes can affect your coverage, leaving you vulnerable in case of unforeseen events. Here are some instances in which your renovations might prompt you to make changes to your policy.

Expanding the Living Space

One of the most common renovation projects involves expanding the living space. Whether you're adding an extension to your home or finishing a previously unused area, these changes can significantly increase your property's value.

However, failure to update your homeowners insurance to reflect these alterations might leave you underinsured. Expanding your living space usually means updating your policy's dwelling coverage to account for the increased square footage and construction costs.

Upgrading Kitchen and Bathrooms

Kitchen and bathroom renovations can add value and functionality to your home. However, these upgrades often involve costly appliances, fixtures, and finishes.

Consequently, you should assess whether your current personal property coverage is adequate to protect these new additions. If necessary, consider increasing your coverage limits to safeguard your investment fully.

Installing High-Value Upgrades

Renovations that include high-value upgrades, such as hardwood flooring, custom cabinetry, or smart home technology, may require special consideration in your homeowners insurance policy.

These additions may exceed the limits of your standard coverage. Speak with your insurance provider to explore options like scheduled personal property endorsements that can provide additional coverage for specific high-value items.

Building a Swimming Pool or Hot Tub

A swimming pool or hot tub can enhance your lifestyle and create an enjoyable outdoor space for family and friends. However, these water features can also introduce potential liabilities, such as accidents or injuries.

It's crucial to inform your insurance provider about the addition of a pool or hot tub, as it may necessitate increasing your liability coverage to protect yourself from potential lawsuits or medical expenses.

Contact Your Insurance Agent Today

Home renovations can breathe new life into your property, but it's vital to remember that they can also impact your homeowners insurance coverage. Failing to update your policy appropriately can leave you vulnerable to financial loss in the event of an accident, theft, or natural disaster.

For more information on your homeowners insurance policy, contact a professional near you.