Whether you want to customize your house, prepare to sell your home, or do a significant fix, renovating your home can be exciting, and it’s a great way to increase your home’s value. But before starting your project, it is essential to consider more than just the initial costs of doing the renovation. Some home projects can significantly impact your monthly expenses, including your home insurance Calgary premiums. Contacting your insurance agent about the changes you plan to make is hence an essential step in the renovation process which is often forgotten. Check out these 5 renovations that can affect your home insurance.
1. Reinstalling the roof
Redoing a new roof can go a long way in saving you money because a new roof can prevent roof leaks and repairs. Installing a new roof can also help to decrease your home insurance premiums by up to twenty percent. Many insurance companies will also give a significant discount if you install a more robust and higher quality roofing resistant to hail, wind, and leaks.
2. Building a pool
Building a pool can make your home popular in the summer, but it also elevates potential liability risk. As people have fun around the pool, there is a higher chance of accidents happening on your property. If an accident occurs at the pool, you might be held responsible for any damages, increasing your need for a higher insurance coverage. Your monthly insurance premium hence will significantly upsurge after building a swimming pool to cater for the increased risk and home insurance cover.
3. Bathroom and kitchen renovations
Most homeowners will turn to the bathroom and kitchen when they need to upgrade their homes. What most people do not understand is that these upgrades increase the value of your home. If you install new appliances, quality countertops, new flooring, etc., you should make sure you ask your insurance agent to revise your insurance coverage upwards, so you have adequate coverage in case of a loss. You should also inquire whether you qualify for a discount if you renovated and upgraded the electrical and plumbing wiring. These upgrades decrease the chances of fires and plumbing, hence reducing your monthly insurance premium.
4. Expanding your living space
Sometimes, you require to expand your home to accommodate your growing family, which means adding more living space. Some additions that could increase your home insurance include; building a new garage, expanding the living room, or adding a second-story bedroom. This will increase your home insurance premiums to account for the additional value of the new space. You might require to consider other types of coverage for the freshly built areas of your home.
5. Adding a deck
You can use a home deck as an area for socialization, particularly at summertime. However, installing a deck can impact your home insurance coverage. Building a deck increases your home value, and it can also increase risk, particularly if it is attached to the second story. Adding a deck increases your property value, so you should have your current insurance policy revised. Your property value and insurance coverage increase; hence you will need to pay higher premiums. Conclusion
If you want to do some home renovations, you should first talk to your insurance agent to help you understand their effect on your insurance policy. This will help you make the most out of your discounts while ensuring your home remains sufficiently insured.