28 May Home Renovations and Insurance: What You Need to Consider

Are you planning some home renovations? It’s the time of the year when many people start looking at their homes and seeing what they can improve, so if you answered that question with a “yes” then you’re not alone. While the cost of these renovations might be the only thing on your mind, you also need to consider the cost of your home insurance as well.

What impact will those improvements have on your insurance? Depending on what you choose, your premiums could either go up or down. Here are a few things to keep in mind before you hire a contractor.

Renovations That May Decrease Your Premiums

There are some home renovations that could work in your favor as far as your home insurance premiums are concerned. Since these upgrades will make your home safer and more secure to live in, your insurance company might reward you with lower costs. What are these useful renovations? They include:

• Upgrading Your HVAC System and Wiring – How old is the wiring in your home? Do you know if your HVAC system is operating as smoothly as it should? By upgrading both, or just one, of these things, you’re making your home safer and more comfortable to live in. Plus, your insurance premiums may go down because of the safety factor.
• Updating Your Roof – There are so many things that can go wrong with a roof, many of which lead to expensive insurance payouts should you lose shingles or end up with an indoor leak due to a storm. Thankfully, a brand-new roof will make all of these things less likely to happen, and will usually shrink your insurance costs as well.
• Having a Security System Installed – Another upgrade that insurance companies want to see is a security system. Consisting of motion-sensor lights, cameras, and more, these systems make your home less likely to be broken into, as well as lowering the odds that you’ll need to file an insurance claim.

Renovations That May Increase Your Premiums

In addition to the renovations that might just make your insurance premiums go down, there are some that can actually increase the amount of money that you’ll have to pay each month. Although these renovations may be aesthetically pleasing and useful, you could end up paying for them in more than one way.

• Adding a Swimming Pool
• Extending Your Home to Include New Rooms
• Renovating Existing Rooms Completely

Since these additions will increase the overall amount that your home is worth, they will also add to the amount of homeowner’s insurance that you need to pay. In addition, you have to consider the replacement cost of them should something happen, and they need to be replaced.

Have Questions About Your Home Insurance?

Are you wondering about how your home renovations will affect the cost of your insurance premiums? Have you recently completed renovations and are wondering what amounts you should increase your policy by? If so, contact Spivey Insurance today. Our knowledgeable agents will be able to help you select the coverage you need.