Fall Home Projects That Could Affect Your Insurance
Fall can be a great time to tackle home improvement projects. Maybe you’re replacing an aging roof, adding a deck, finishing the basement, installing a generator, or finally building that backyard shed.
While you’re thinking about contractors, materials, permits, and budgets, there’s one more thing that may belong on your project checklist: your homeowners insurance.
Certain improvements can change the value of your home, the cost to rebuild it, or the risks associated with your property. That means a major home improvement may also be a good reason to review your insurance coverage.
Here are several common home projects that could affect your homeowners insurance.
1. Replacing Your Roof
A new roof is one of the biggest investments you can make in your home, and it is something your insurance agent should know about.
Roof age and condition can play a role in homeowners insurance. If you replace your roof, let your insurance agent know what was installed and when the work was completed.
Keep your contract, receipts, warranty information, and photographs with your home records.
2. Finishing Your Basement
Turning an unfinished basement into additional living space can significantly change your home.
New flooring, walls, electrical work, plumbing, bathrooms, entertainment areas, or a home gym can all increase the amount of finished space and property that would need to be repaired or replaced following a covered loss.
Once the project is complete, your current coverage limits may need to be reviewed.
Basements can also present unique water related risks, so this is a good opportunity to discuss what your policy does and does not cover.
3. Adding a Deck
A new deck can completely change how you use your backyard, but it also becomes part of your home’s overall structure.
If you build a new deck or significantly expand an existing one, notify your insurance agent so the improvement can be considered when reviewing your home’s replacement cost.
It is also important to think about liability. Make sure stairs, railings, lighting, and walking surfaces are properly installed and maintained to help reduce the risk of injuries.
4. Installing a Pool
A swimming pool can add a lot of fun to your backyard, but it also introduces additional liability concerns.
If you are considering an above ground or in ground pool, talk with your insurance agent before installation.
Your insurer may have requirements involving fencing, gates, covers, diving boards, slides, or other safety features. Your liability coverage should also be reviewed to determine whether it is appropriate for your situation.
5. Building a Shed or Other Structure
A new shed, detached garage, gazebo, workshop, or similar structure may fall under the other structures portion of a homeowners policy.
But don’t assume every new structure or everything stored inside it is automatically covered exactly as you expect.
Consider both the cost of the structure and what you plan to keep inside. Lawn equipment, power tools, bicycles, recreational equipment, and other belongings can quickly add up in value.
6. Installing Solar Panels
Solar panels are another significant home investment that your insurance company should know about.
Coverage can depend on how the system is installed and whether the panels are owned or leased. Roof mounted systems may be treated differently from equipment installed elsewhere on the property.
Before installation, discuss the project with your insurance agent and find out whether your coverage needs to be updated.
7. Adding a Standby Generator
Whole house generators have become increasingly popular with homeowners looking for protection during power outages.
Because a permanently installed generator becomes part of your property, tell your insurance agent when one is installed.
Professional installation and proper maintenance are also important. Generators involve electrical systems and fuel sources that should be handled according to manufacturer instructions and applicable building requirements.
8. Creating a Home Office
Working from home has changed how many people use their houses.
If your home office includes expensive computers, electronics, specialized equipment, or business inventory, it is worth discussing with your insurance agent.
Standard homeowners policies may have limitations involving property used for business purposes. Depending on what you do from home, additional business coverage may be appropriate.
9. Major Renovations and Additions
Kitchen remodels, bathroom renovations, additions, converted garages, new bedrooms, and other substantial improvements can increase the cost of rebuilding your home.
Consider a kitchen renovation, for example. New cabinets, countertops, flooring, appliances, electrical work, and plumbing can represent a significant investment.
If your home’s replacement cost has increased but your insurance coverage hasn’t changed, there could be a gap between your current policy limits and what it would actually cost to rebuild after a major covered loss.
Don’t Wait Until You Have a Claim
Homeowners insurance isn’t something you should purchase once and forget about.
Your home changes over time. You renovate rooms, purchase new equipment, build structures, and make improvements. Your insurance coverage may need to change along with it.
Before beginning a significant home improvement project, contact your insurance agent and ask whether the project could affect your policy. Then review your coverage again when the work is complete.
Keep receipts, contracts, permits, photographs, warranties, and other documentation from major improvements with your home records.
Planning a Fall Home Improvement Project?
If you’re making changes to your home this fall, it may be a good time for an insurance review.
Contact KVCW Insurance to discuss your homeowners coverage and make sure your policy continues to fit your home as it changes.
Insurance coverage, requirements, limits, and exclusions vary by policy and insurance carrier. Contact your insurance professional to discuss your specific situation before beginning a major home improvement project.
