Can Home Renovations and Upgrades Affect Your Homeowners’ Insurance?

Home renovations will have an impact on your homeowners’ insurance no matter what kind of renovation you perform. Even a small renovation can have a large impact if it affects the overall value of your home. Understanding the different types of renovations and why they are performed, will help you better understand why your coverage might change. Read on to understand how home renovations impact your coverage.

What Types of Remodeling Projects Affect Your Homeowners’ Coverage?

There are several types of remodeling projects. A DIY deck addition, adding a swimming pool, replacing the roof, or upgrading your kitchen can significantly change the value of your home, as well as the amount of coverage you will need to protect your investment. Before you start any renovations, make sure to inform your insurance provider to adjust your coverage limits.

Is Your Home Covered When You’re Conducting Renovations?

Your home will be covered under most types of renovations. There are times, however, when it may not be covered. Before you begin the renovations, it is essential that you meet with your insurance agent and discuss your plans for remodeling or renovating your home. They will be able to help you understand what is and is not covered.

Will Your Home Remain Vacant During Renovations?

If the renovations require that you leave your home for longer than 60 days, it will be considered vacant, and your homeowners’ policy will not cover theft or vandalism. If you will be living away from your home for 60 consecutive days, you will want to inquire about vacant or unoccupied homeowners’ insurance to protect your home during that time.

Will Your Home Be Marked as “Under Construction”?

Most homeowners’ policies won’t cover your home or the materials being used if it is determined to be “under construction.” There are certain stipulations involving what is considered to be “construction,” so you will need to talk to your insurance agent prior to starting your renovations.

What Happens If the Remodeling Is Faulty or Has Defects?

Most homeowners’ insurance policies will cover structural collapse or other types of damage that were the result of faulty or defective materials that were used during a remodel or renovation of your home. You will want to talk to your insurance agent about other types of damage associated with defective materials.

Are You Carrying Out the Home Renovations Yourself?

When you take on a home remodel or renovation project yourself, you might have a friend or two-step up to help you. If this is the case, you will want to talk to your insurance agent to ensure they will be covered if they are injured while working on your home.

Why It’s Important to Verify Your Contractor’s Insurance?

If you are hiring for the work to be done on your home, it’s a good idea to verify your contractor’s insurance. If they don’t have sufficient coverage, you will be responsible for any damage that they may cause. While it’s important that they have their own coverage, it’s a good idea for you to have your own coverage as well.

Remodeling your home can be quite an undertaking. You can take much of the guesswork out of the process if you have the right type of homeowners’ coverage. Contact our insurance experts at J. Archer Insurance Group. We can answer any questions you may have and provide you with the coverage you need to keep your home secure and your investment safe.

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