Does Your Homeowners Insurance Coverage Pay for Home Improvements?

Every new year many homeowners feel the urge to make home improvements. However, it’s important to include these renovations in your insurance policy, especially when they have increased the value of the house and may not receive an appropriate settlement in the event of an accident.

Making Sure Your Home Is Always Protected

From an insurance perspective, any house improvement must consider the following two factors

1. Preparation for construction

   If you are planning for construction, you must revise your current policy. Liability coverage generally undergoes the most significant update. If someone who doesn’t live with you gets hurt during renovation, liability insurance can pay for the resulting expenses.

   This is crucial for both DIY projects and those involving local contractors. Additionally, if building supplies get stolen or damaged at construction sites, you can purchase housing renovation insurance to cover the same.

2. Upon completion of the work

   Consider raising the limits of your liability coverage if the renovation involves a significant addition, such as installing a pool or hot tub. Additionally, you might want to increase the limits on your personal property insurance if you purchased any valuable items for the renovation. Any brand-new, expensive items might require further protection in the form of a floater or endorsement.

Don’t Let Your Savings Slip Away

When done correctly, home remodelling projects can result in significant insurance savings. For instance, you can lower your premiums by installing safety equipment at home, such as fire extinguishers, sprinkler systems, and burglar alarms. As these precautions help reduce the likelihood of claims, installing them can make you eligible for discounts.

Here are a few home renovations you can make to lower your insurance costs:

1. Home security – Smoke detectors, burglar alarms, and deadbolt locks typically qualify for discounts of at least 5%. However, it’s best to first find out what kind your insurance suggests, how much the system would cost, and how much you would save on premiums before you purchase one.
2. Roof replacement– The condition of your roof can significantly affect your premiums. Replacing an old roof with a brand-new one can help lower insurance costs.
3. Weather protection – Find out how you can make your house more resilient to windstorms and other natural disasters. Consider buying impact-resistant windows, storm shutters, or strong garage doors that can withstand strong winds and other natural elements.

Get All the Coverage You Need with McCarty Insurance

No matter what kind of improvements you make, your current coverage limits might not be enough to cover the liabilities and post-renovation value of your house. Before work begins, always check with your insurance agent to see if your current policy will cover potential liabilities, both during and after renovation.

To get started on tailored homeowners insurance coverage, contact our experts at McCarty Insurance right away.

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