Home renovations are an exciting way to enhance your living space, increase property value, and improve your lifestyle. However, it's essential to consider how these renovations can affect your homeowners' insurance. Let's explore what you need to know about home renovations and insurance to ensure that your investment remains adequately protected throughout the renovation process and beyond.

Notify Your Insurance Provider:

• Before you start any renovation project, it's crucial to inform your homeowners' insurance provider. This allows them to assess the changes and determine if your coverage needs to be adjusted.

Understanding Coverage Changes:

• Renovations can impact your home's value, which may necessitate adjustments to your insurance policy. Depending on the scope of the project, you may need to increase coverage to protect the improved property value.

Builder's Risk Insurance:

• For major renovations or construction projects, consider builder's risk insurance. This coverage protects against damage to your home during construction and is typically purchased by the homeowner or the contractor.

Liability Coverage:

• During renovations, there's an increased risk of accidents or injuries on your property. Ensure that your liability coverage is sufficient to protect you in case of such incidents.

Coverage for Materials and Tools:

• If you've purchased materials or tools for the renovation, check whether they are covered by your homeowners' insurance in case of theft or damage.

Temporary Relocation:

• For extensive renovations that make your home temporarily uninhabitable, discuss with your insurance provider the need for additional living expense coverage to cover the cost of temporary accommodation.

Work with Licensed Contractors:

• Working with licensed and insured contractors is not only a wise choice for the quality of work but also ensures that they have their own liability insurance.

Keep Records:

• Maintain detailed records of your renovation project, including invoices, receipts, and photographs. This documentation can be invaluable if you need to file a claim.

Post-Renovation Reassessment:

• Once your renovation is complete, reassess your homeowners' insurance to ensure that it adequately covers the new value of your property and any improvements.

Review Policy Exclusions:

• Take the time to review any policy exclusions or limitations that may affect your renovation project. Certain types of renovations, such as swimming pool installations or structural changes, may have specific insurance considerations.

Safeguarding Your Home Investment

Home renovations can significantly enhance your property's value and your quality of life. However, it's crucial to be proactive about protecting your investment by understanding how renovations can affect your homeowners' insurance. By working closely with your insurance provider, keeping meticulous records, and ensuring that you have the right coverage in place, you can enjoy the benefits of your newly renovated home with peace of mind. If you have any questions or need assistance with adjusting your insurance coverage during a renovation, Wilkes Agency is here to provide expert guidance and support.