If you’re one of the many homeowners looking to conduct home renovations this year, you have a lot on your plate. Materials, color, contractor, and everything in between are likely on your mind. However, have you considered how these home renovations will affect your homeowners’ insurance? Despite popular neglect, it’s imperative that you update your homeowners’ insurance policy when conducting home renovations. Failure to do so will not only leave your new renovations vulnerable, but may even result in a drop of coverage altogether.
The reason why you must update your homeowners’ insurance policy after performing home upgrades is simple. Since your renovations are increasing the value of your home, it would cost more to replace or repair after a named peril. Additionally, your home upgrade project may be increasing your liability risks as a homeowner. For example, if you’re installing a pool, you’ll need to purchase additional liability protection in case someone is injured in your pool.
Many homeowners choose to take an alternate, less honest route. However, homeowners who fail to inform their insurance carrier when conducting home renovations experience unpleasant consequences. For instance, if someone were to fall and seriously injure themselves in your pool, your insurance provider may choose to refuse coverage and drop your policy since they were unaware you even had a pool. Depending on the severity of the injury and whether or not the individual choses to take legal action, this can leave costly damages that exceed the small increase of your homeowners’ insurance premium.
Therefore, if you’re looking to conduct home renovations, simply inform your insurance provider. Depending on how much your renovations increase your home’s value, you may not see a premium increase at all. However, this small boost is well worth the protection.
If you’re planning home renovations, please don’t hesitate to give us a call. Contact Idaho Insurance/Affordable Insurance in Caldwell for all of your Idaho homeowners’ insurance needs. We’ll help you update your homeowners’ insurance policy to ensure you’re receiving optimal protection.