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3 Home Renovation Insurance Implications

3 Home Renovation Insurance Implications

Planning a renovation can be both fun and exciting, but there are many factors to consider before embarking on a home improvement project. Perhaps most importantly, you’ll need to determine if your remodel will affect your insurance coverage.

Here’s how three common renovations can impact your insurance.

Building a New Addition
Whether you’re thinking of expanding your living room, finishing the basement or building a garage, any new addition to your home will likely increase its replacement value and, in turn, your insurance coverage. Before building a new addition, contact your insurance provider to see how much it will cause your premiums to rise.

Installing a Pool
Adding a pool to your home can increase its value and offer an incentive to would-be buyers. However, pools also increase the risk of water damage to your property and subject you to new liability. Check with your insurance provider to see whether your existing policy covers a pool and if you’ll need to increase your liability coverage. You may also want to inquire about what steps you must take to ensure your pool is safe, such as adding a fence with a locked gate around the perimeter.

Renovating a Kitchen
Kitchen upgrades are a great way to increase the value of your home and your insurance coverage, especially if you add new countertops, appliances or flooring. If your contractor upgrades the plumbing or electrical wiring as part of the renovation, ask you insurance provider if you qualify for a discount or if your coverage needs to be adjusted. Kitchen upgrades can lessen the chances of water and fire damage, so there may be an opportunity to reduce the premium.