Deciding to make changes to your home is an expensive decision. It’s essential that you talk to your insurance agent to understand how specific upgrades and improvements will impact your home. Many home improvements will actually drop the cost of your homeowners policy, while others will dramatically increase it. When you begin to make renovations, you must let your insurance provider know what you are doing so they can adjust your coverage to cover the cost of the new materials. Here’s how home renovations can impact your home insurance in McKinney, TX.
The Impact of Renovating, Repairing or Replacing Your Roof
Renovating, repairing, or replacing your roof will increase the value of your home. It will reduce your risk of damage caused by leaking or high winds and will also impact your homeowners insurance as well. It may cause the value of your policy to go up as the total value of the home increases, but it will also greatly reduce your risk of damage. The ups and downs will determine whether the cost of your homeowners’ insurance goes up or down.
Putting in a Pool
Installing an in-ground pool may increase your property value, but it will also dramatically increase your liability risk. Putting in an above-ground pool or hot tub will also increase your risk of potential liability. Pools with a diving board or slide are considered an even greater potential hazard. If you already have a privacy fence in place, your risk will be reduced but will still be a factor in how much you are charged for your homeowners’ insurance. If you want to keep your premiums manageable, it’s necessary to take appropriate measures to keep your risks at a minimum.
Building a Home Office
If you choose to convert a room in your home into an office, it may increase your homeowners’ premiums, especially if it increases the number of footfalls in your home. Most home offices have more electronics and valuable paperwork that is extremely important to your business. This may also lead to various types of liability that may have to do with your business. You will need to create a full and highly-detailed inventory of all of the assets owned by the business so that your homeowners’ insurance will be able to be adjusted accordingly. You may be required to purchase a business insurance policy.
Expanding Your Living Area
Anytime that you add to your living space, you will need to be prepared to update your insurance coverage. Implement this implement as soon as the work begins, and the building supplies are delivered to your home. Once your renovations are complete, you will need to have your home appraised to find its new value. This will need to be reported to your insurance agent to update your home’s value and your amount of coverage to be accurately adjusted.
Impact of Upgrading Your Kitchen and/or Bathroom
Upgrading your kitchen and bathroom is a double-edged sword. While these renovations may increase the value of your home, they will also increase your liability in some aspects. Installing safeguards in your bathroom like handrails or slip prevention strips in your bathtub may help. Installing energy-efficient appliances will add value to your home as well as reduce your risk of certain perils like water leaks and electrical malfunctions. However, if you’ve installed top-of-the-line kitchen appliances, it can increase the value of your home and insurance premiums.
Talking to your insurance agent before you start making your repairs will give you a good idea of how your homeowners’ insurance will be affected. Contact our insurance experts at Pierce Insurance Group and find out how we can help you keep your insurance premiums affordable during and after the construction takes place. Call us today to discuss your options with one of our experts. We are here to help!