Home Renovations That Might Affect Your Insurance Rates

​Home renovations can be exciting and, at some level, self-fulfilling. Until something happens and you realize your insurance is not sufficient to cover all damages. It is why before starting renovations, getting your insurance up-to-date is crucial. Here are some home renovations that might affect your insurance rates:

Adding a Pool
Building a pool in a relatively large backyard is something to look forward to in a family home. Imagine having your kids’ friends over for a pool party. But, you might also be aware of the potential risks of keeping pools close to children or even adults. 

These potential risks might outgrow your existing liability coverage, which pays for medical and legal costs after claims. Opting for higher liability coverage can help you get covered for pool-related lawsuits.

Expanding and Upgrading Rooms
You might need to add more rooms with your growing family, such as turning an attic or basement into living spaces. Additionally, you might consider upgrading your kitchen and bath to accommodate increasing needs. All these renovations increase your home’s value.

In these cases, consider having insurance reevaluation to include the new rooms and upgrades in your coverage. It prevents your home from getting undervalued, and your insurance can adequately pay if you file for a claim. 

Some changes might even prompt insurance updates. These include adding carpets, insulation, and drywall to your basement. If your sump pump is also in the basement, you might want to add water backup coverage to your policy.

Setting Up a Home Office or Business
When you have set up a home-based business, your insurance typically covers up to $2,500 of equipment and supplies. However, it might not be enough to cover specialized machinery and supplies you might be keeping at home. It is why you should also consider upgrading your current policy or getting separate business insurance.

Replacing the Roof
Meanwhile, replacing the roof can lower your insurance rates. If you live in a hurricane-prone area, adding loss-mitigation measures, such as waterproofing, are subject to greater discounts. Other insurers also apply depreciation schedules depending on the roof’s age. The newer it is, the more it is covered. 

Conclusion
Home renovations can either increase your home’s value, add potential hazards or prevent loss from natural causes such as hurricanes. It is crucial to keep your insurance updated, so your home is sufficiently covered. 

At Pro Financials & Insurance Services, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (708) 233-8870. Get your free quote today by CLICKING HERE.