With the first warm days of the year upon us, spring always brings a renewed motivation for making improvements to one’s home. Whether you’re a “Hardware Store Warrior” building a new deck yourself, or if you’re simply hiring a contractor to add a patio, don’t forget to check what impact such improvements may have on your homeowners insurance policy — before you begin!Home improvements can quickly add to a home’s value. Accordingly, you should do a quick comparison of the difference in homeowners insurance quotes with the improvements. It is not until a disaster strikes that many homeowners realize they haven’t reevaluated their coverage to include any improvements made to the house.
After undergoing the tragedy of losing your home, you don’t want to also find out that your insurance policy covers only the pre-improvement value of your home. The difference in replacement value can be very significant. Trusted Choice® reports that nearly 40% of homeowners who make improvements to their homes do not update their homeowners policies to reflect these changes.
As the value of your home increases, you may experience a modest increase in your homeowners insurance as a result. There are many discounts available to you that may help offset any such increase. Have you added any new security devices to your home in the last year; perhaps deadbolt locks, window locks, a burglar alarm, or even smoke detectors? Insurance companies highly value the protection afforded by these types of safety devices and are known to reduce premiums by as much as 20% as a result. In the same fashion, you may also experience additional savings on your policy if you upgrade your home’s heating, plumbing, or electrical systems.
There are additional benefits to comparing homeowners quotes before any renovation. If you adjust your policy before the work even begins, you may be covered for any building materials you have in your house during the course of the project. With the increased heavy duty labor, you may be exposed to an increased level of liability and risk of home disasters. Incidentally, it’s a good idea to take “before, during, and after” pictures throughout the renovation. In the event of a claim, you may be required to provide justifiable proof. Likewise, it is also imperative that you make sure any contractors are properly licensed and insured with all corresponding documentation.
Beyond the home improvements at hand, comparing multiple homeowners quotes is an exercise that can uncover new discounts and savings. You should review your homeowners insurance policy at least every 12 months, or more often if your needs change. Significant discounts and savings may have become available since your last policy review. Even if nothing changed on your end, many insurance companies may have reduced homeowners insurance rates since your last review.
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