It is often a wise financial decision to make upgrades to your home. There is a growing trend in our country for people to increase the value of their homes with renovations, whether the goal is to make the home more comfortable or to increase the resale value of the home.
One thing that is often overlooked when people upgrade their home is to update the coverage on that home. It is estimated that 2 out of 5 homeowners that endeavor to renovate their home fail to contact the insurance company and make them aware of the changes. This can mean that if something happens to the home you might not be covered for the additional expense and value of your house.
The renovations that you make to your home may be small or they may be substantial. If you are remodeling the kitchen or bathroom, adding a new deck or veranda to a home or adding additional rooms you should make sure that you let your insurance company know about the changes. If you are thinking that this will add additional premiums to your policy it might, but you will want to have these upgrades or additions covered just like the rest of the home.
Why you Need to Let the Insurance Company Know
It is not likely that the insurance company will pay for any upgrades made to the home if you have not informed them. If the home is damaged to the point where it is difficult to determine what was there before you can be pretty sure that they will not reimburse you for the upgrades. It is important to let the insurance company know, and in fact it also matters when you let them know about it. The best way is to have the information to them before you even begin to do the renovations. That way if there is an accident or you are liable for injury from those that are renovating your home you will be covered. You may also have expensive materials present in the home while renovations are being done and it is wise to ensure that these are covered as well. There are many ways that you can suffer loss while the renovations are taking place, whether it is an accident, theft or something like a fire.
If you are concerned about the difference in premiums then you can discuss your plans with the insurance company before you begin. If you are making changes that make the home more secure, or upgrading the electrical system you may find that you actually save some money on your premiums. It is wise to be armed with all the information you can get before you make a decision to spend a lot of money on your renovation. Make sure that you record the state of the home both before and after the upgrades have been done and pass this information on to the insurance company. Insurance is a valuable commodity and it is in your best interest to make sure that it works for you in the best way possible.