Renovating your home can be an exciting time, but there are important things to keep in mind. Before you perform any remodels, take a look at the remodeling cost versus the effect on your resale value. You want to be sure it will be a worthwhile investment.
In the end, you want to be improving your home and be able to increase your asking price. Some additions are purely for your current comfort however knowing if your plans will help increase your selling price down the road is helpful to know before starting the project. Many times house improvements can help you now as well by decreasing your homeowner’s insurance costs.
7 Home Renovations that Impact Your Homeowners Insurance
Renovations that can affect your homeowners premiums:
- Renovating your roof.
While adding a new roof is not one of the favorite things about being a homeowner, it can be one of the necessary ones. It can also save you a lot of money on your homeowners insurance. The newer your roof is, but the more money your insurer will spend to replace it.
- Adding a pool.
A pool can be an exciting addition to your home, but it will also increase your homeowners insurance premiums. This increase is due to the fact that you will probably need more coverage when it comes to liability in case someone gets injured.
- Updating your kitchen.
If you switch out countertops and appliances with higher-end models, you may need to increase your coverage. Your premium is likely to go up because your home is worth more.
- Adding a home office.
A home office may seem like a worthwhile investment, but it can make your homeowners insurance costs increase. The majority of homeowners policies will protect the equpment for home-based businesses, but only up to about 2,500 dollars. If you need additional protection, you will need to add to your existing policy.
- Updating your bathrooms.
Just as with updating your kitchen, the same considerations need to be taken when updating your bathrooms. If you switch out different features, you will need to update your coverage and your premium may increase with the worth of your home.
- Adding space to your home.
You may not think of finishing your basement as adding space to your home, but you are. This adds to your livable square footage and you need to account for this in your coverage.
- Adding a deck.
A deck should add to the value of your home without adding to your premium. Decks are considered a part of the physical strucutre of your home as long as it is attached. It should then be covered under your dwelling coverage section of your policy.
If you are considering any type of updates to your home, be sure to contact your insurance representative first. Contact us at NE Insure with any questions you may have.