Home renovations can significantly improve the value and comfort of your home. However, they can also have a substantial impact on your home insurance. At Ferrell Agency, located in Columbus, OH, we believe it’s essential to understand these implications before starting any renovation project.
Boosting Property Value Through Home Renovations
Renovations often increase the value of your home. Whether it’s a kitchen upgrade, a new bathroom, or an added room, these improvements can significantly boost your property’s market value. Consequently, your existing home insurance coverage may no longer be sufficient to replace or repair the renovated property in case of a loss.
Keeping Your Insurance Company Informed About Renovations
It’s crucial to inform your insurance company about your renovation plans before you start. This way, they can adjust your policy to ensure it provides adequate coverage during and after the renovation. Some renovations, like a new roof or security system, might even qualify you for discounts on your premium.
Renovations That Could Impact Your Premium
While some renovations can lead to discounts, others might increase your insurance premium. For instance, adding a swimming pool or a trampoline might increase your liability risk, leading to a higher premium. Similarly, high-end renovations that significantly increase your home’s value might also result in a higher premium.
Striking a Balance: Home Improvements and Insurance Costs
Home renovations can be an exciting way to improve your living space and increase your property’s value. However, it’s essential to consider the impact on your home insurance. By working closely with your insurance agent at Ferrell Agency in Columbus, OH, you can strike a balance between making your dream home a reality and maintaining affordable insurance coverage.
For more information about home insurance and renovations, contact us at Ferrell Agency today.
