Remodeling Your Home? Be Sure To Adjust Your Homeowners Insurance

August 2, 2006 | By: Inszo | Comments (2) | Posted in: Homeowners

Home remodeling quickly adds to a houses value, but many homeowners fail to increase their homeowners insurance coverage accordingly. It is not until a disaster strikes that many homeowners realize that they haven’t reevaluated their coverage to include any work done on the house. After already undergoing the tragedy of losing your home, you don’t want to also find out that your insurance policy only covers what your house used to be rather than what you have made it into. Imagine that you renovated a small one bedroom fixer-upper into a modern 3 bedroom home with a new yard or deck – the difference in replacement value would be considerable.

It is recommended that you review your homeowners insurance policy at least once a year. Make sure your policy matches your home’s replacement value so you have one less thing to worry about.

Fundamental Homeowners Insurance Tips

• Many homeowners only insure their homes based on their lender’s requirements, purchasing only enough insurance to cover their mortgage balance. This leads experts to estimate that nearly two thirds of all U.S. homes are underinsured, and many significantly so.

• If you have installed home safety upgrades to your home since you purchased your homeowners insurance policy (such as alarms, deadbolts, smoke detectors or fire extinguishers), make sure you notify your insurance company, as you may qualify for discounts. Same advice goes for if you have upgraded your home’s heating, plumbing, or electrical systems.

• If you do not have a Homeowners policy that automatically raises your coverage on an annual basis due to increasing home values in your area, make sure you adjust your level of coverage to match your home’s value. It’s ultimately up to you to make sure you have enough coverage.

• Make sure you report any renovations to your insurance company or agent as soon as you begin, or at least right after completion. It’s a good idea to take before and after pictures in case your insurance company requires them.

• Consider insuring your home with the same company that insures your vehicle(s), as many companies offer multi-policy discounts for insuring both.

• Make sure any contractors you hire to work on your house are properly licensed and insured. Ask to see copies of both their licenses and insurance policies.

Homeowners Insurance: Money Saving Tips

 

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