Renovating your home can add some much needed space and features, in addition to increasing your home’s value. As you get excited about your new space, it can be easy to forget some important follow-up tasks. It is important to call your insurance company after home renovations. Here’s why.
Insure the Renovated Space
Your MA homeowners insurance policy details the space and amenities in your home. These features are specifically covered in case of damage or complete loss. For example, if you have a 4 bedroom home that gets destroyed in a fire, your insurance policy should cover the rebuilding of a 4 bedroom home with similar features. If you’ve added a 5th bedroom and bath but failed to include that in your policy, then you may not have enough coverage to get those back in the rebuild.
Increase Replacement Value
Every homeowners insurance policy covers a specific dollar value, referred to as replacement value. The value is calculated based on the size, features, and amenities of the home. When you renovate a property to add more living space and amenities, your replacement value needs to be increased. Otherwise, your policy will not be enough to include that new space. This is an extremely important reason to call your insurance company after home renovations.
Change in Policy Premiums
Any time that you increase coverage, such as changing the replacement value, your premiums will change accordingly. A higher coverage amount will naturally mean a higher premium. Sure, this sounds like a down side, but the additional cost is very minor compared to the money that you have spent on the renovation. It’s important to protect your investment from damage and other hazards.
It may be a good idea to get an estimate of potential changes to your insurance premiums prior to starting your renovation project. You may also shop around for different rates and coverage options from several insurance providers. Contact Gorman Insurance for a free quote.