The best home improvements are virtually guaranteed to add value to your home. As a result, once these projects are complete, you’ll likely need to revise your insurance plan. If you don’t, you’ll only have sufficient coverage for protecting a portion of this important asset. Here are a few factors to consider.
Your Liability Needs
In addition to increasing the value of your property, a remodeling project can also introduce new liability concerns. Installing an outdoor kitchen, swimming pool, or other recreational feature can increase the likelihood of visitors harming themselves. Your San Diego home insurance agency can update your plan after revising your risk profile. Once the added risks are known, it will be easier to identify any gaps in your policy that need to be addressed.
Remodeling Projects Most Likely to Affect Coverage
Ultimately, anything altering your home’s structure, the layout of your property, or the way the property’s features are used will need to be reflected in your current insurance plan. One of the biggest features affecting your coverage needs is the roof because it adds considerable value. Changes in roofing materials or roofing style can have a significant impact on your risk profile. Upgrades in the kitchen or bathroom may also increase property values and nearly always result in policy revisions. The addition of recreational features and new cooking or heating features must be accounted for as well, which remains true even when these new features are located outside of the actual building structure.
Commercial Coverage and Contractors
Your home insurance policy is one of your best motivations for choosing licensed and fully insured agencies and contractors. If something goes awry and you happen to have an unlicensed and unprotected party on the job, your own policy could be voided. Moreover, you’ll have to foot the bill for all of the resulting damages. Thus, whenever you plan a remodel, get in touch with your insurer before the job is started to discuss your coverage-related concerns, contact your insurer again after the work is complete so your policy can be strategically revised, and make sure the contractors you hire carry their own San Diego workers comp insurance and other relevant policies.
If you are planning a remodeling project for your home and are unsure how it might affect your insurance, reach out to the insurance experts at American Tri-Star. In addition to homeowners insurance, we also offer affordable health, commercial, RV, and auto insurance in San Diego. Give us a call today at 619-272-2100 and one of our friendly agents would be happy to assist you.