Summer is the season of sunshine, barbecues, and… home renovations! Whether you’re finally building that backyard desk, upgrading your kitchen, or adding a sunroom, summer is a great time to tackle home improvement projects. But amid the excitement of choosing a finished product and finding the right contractor, there’s one critical step that homeowners often overlook – updating their insurance.
Why Insurance Matters During Renovations
Home renovations can significantly increase the value of your home, which may mean your existing homeowners' insurance policy doesn’t provide enough coverage anymore. If your coverage isn’t updated, you could be left underinsured in the event of a fire, storm, or other disaster.
Renovations can introduce new risks. Contractors working on your property, tools, and materials left on site, as well as the structural changes themselves, can all pose unique insurance challenges. Without the right protection in place, you may find yourself financially exposed if something goes wrong.
Renovations That Can Impact Your Insurance
Not every project will require an update to your insurance, but here are a few common renovations that typically do:
- Kitchen or Bathroom Remodels: These often involve expensive upgrades and structural changes that raise your home’s replacement cost.
- Room Additions: Whether it’s a new bedroom, office, or finished basement, added square footage impacts your coverage needs.
- Decks, Pools, and Outdoor Living Spaces: These popular summer projects can affect both property coverage and liability exposure.
- Roof Replacement or Upgrades: A new roof may reduce your premiums, but it still needs to be reported.
Key Coverage Considerations
Before starting a renovation, talk to your independent insurance agent about the following:
- Dwelling Coverage: Ensure your policy reflects the increased replacement value of your updated home.
- Liability Coverage: Consider increasing liability protection, especially if your renovation involves features like a pool or if you’re hiring workers.
- Builder’s Risk or Renovation Insurance: This special coverage protects your home while it’s under construction and can cover damage from fire, theft, vandalism, and weather events during the renovation.
- Personal Property Protection: If you're upgrading appliances or furniture, make sure your contents coverage is up to date.
Hiring a contractor? Ask about insurance. If you are hiring a contractor, make sure to confirm they carry general liability insurance, workers’ compensation insurance, and have certificates of insurance. This protects you from being help responsible if a worker is injured in your property of causes damage during the renovation.
It’s also important to keep records and open communication with your independent insurance agent during the renovation. Make sure to save any receipts and invoices, take before and after photos, and let your insurance agent know when the project is complete so they can update your coverage.
Home improvements should bring peace of mind, not added worry. At DGK Insurance, we’re here to help you navigate insurance during and after your renovation project. Our experience team will review your current policy, assess any changes needed, and make sure your coverage keeps pace with your investment.