Summer is a great time to renovate your Georgia home, making it a more comfortable, functional abode for your family. Before tackling home improvements, however, talk to your insurance agent from The Sanford Group in Ball Ground, GA about how renovations will affect your home insurance coverage. Here are a few ways major renovations could affect your policy.
Raise Property Value
Major renovations such as a kitchen remodel or adding a back patio for BBQs can raise the value of your property. If the new value of your home exceeds the limits of the dwelling coverage on your current policy, you’ll need to extend these limits to protect your investment. This requires an update to your policy. Ideally, your dwelling insurance should cover the cost of rebuilding your home if it suffers a total loss in a covered peril. Anything less could result in your paying the difference out-of-pocket.
Raise Home Insurance Costs
Home renovations need to be added to your insurance policy to be protected along with the rest of your home. Some renovations can increase your home insurance costs. Renovations that add more livable space to your property, i.e. new patio, new bathroom, home office, need insurance protection against damage, theft or liability risks, increasing insurance costs. If you invest in new goods for your renovations such as new appliances, electronics, etc., these also need protection, increasing the cost of your personal property coverage.
Reduce Home Insurance Costs
On the flip side, some renovations such as upgrading your electrical, HVAC or plumbing systems, could reduce your home insurance costs as they reduce your risks of damage due to accidental fire or water leakage. Safety features such as a new security system could also reduce your home insurance rates.
To learn more about home insurance options, coverage and costs, contact The Sanford Group in Ball Ground, GA.