As the latest thunderstorm rolls across your town, you sit in your kitchen feeling assured that the contents of your home will be protected. That’s because you replaced your roof last week. Now, you can rest a bit easier knowing that water won’t leak into your attic causing damage. Home renovations can be expensive, but there are many benefits as well, one of which is a discount on your homeowners insurance.
Your newly renovated home may qualify you for a discount on your annual premium. Depending upon your insurer, the discount can be as much as ten percent. Combined with other discounts such as going paperless, having good credit, or paying your premium in full, you could see a significant reduction in your insurance rates.
Home insurance companies like to reward you for making responsible choices. Putting a new roof on your home will protect you from the elements while also reducing your chances of making an insurance claim. Giving your bathroom or kitchen a facelift may not necessarily qualify you for a discount, but if you also updated the plumbing and wiring in the process, then your insurer may reward you.
The types of home renovations that insurance companies like to see completed may not always be the most exciting, but they help keep your home safe. Below are several examples of home renovations that may qualify for a discount:
- Roof replacement (not just adding a new layer of shingles)
- Updating your heating and cooling systems
- Replacing the wiring
- Renovating the plumbing system
The most important thing to keep in mind when updating your home is to hire a licensed and qualified professional to complete the work. The renovations also must comply with local building and safety codes.
Renovate Your Insurance Policy
Once the renovations have been completed, contact your independent insurance agent. They will need information on the type of repairs and proof that the work was done recently, like copies of payment receipts, before and after pictures, and building permits. Then, they can assess whether or not you qualify for a discount. Each insurance company has different requirements. For example, one insurer may offer a discount if the roof was fully replaced within the last ten years. Or, that the renovations were done on a home older than 25 years.
Whether or not you think your home renovations qualify for a discount, be sure to contact your independent insurance agent. Let them know about the renovations before the work has been completed in order to have extra protection against losses right away.
This is also good time to reassess your coverage. Cosmetic changes can still affect the value and liability issues of your home. If the structure or surrounding property of the home has been modified in any way, then you may need additional insurance.
Including the new addition or the renovations under your policy means that if you experience a loss, it will be covered. For example, if a bad storm damages the roof over your new porch, then the home insurance will help to pay to have it replaced.
As a rule of thumb, speak to your agent if you have increased the value of your home by at least five percent. “Keeping your agent informed especially makes sense if you’re planning a makeover, simply because there’s no magic formula to determine how much a project might affect your premium.” Whether it is a discount or an increase in your coverage, your premium may be affected in some way.
Big or small, home renovations are an excellent way to invest in your property and increase its value. On an annual basis, speak with your agent about any improvements you’ve made. Even if it’s as small as changing the carpet or adding crown molding, it should be mentioned. So, make an appointment to speak with your agent today!
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