Certain home improvement projects can have a significant impact on your homeowners insurance coverage, and plumbing updates are at the top of the list. In fact, if a plumbing project isn’t properly managed and reported from the outset, it may even cause your policy to be voided. The home insurance experts at Tri-Star Insurance in National City discuss 4 reasons you should talk to your insurer about any plumbing renovations you’re planning.
1. Make Adjustments for Resale Value
A plumbing renovation is virtually guaranteed to enhance both the marketability and the usability of your home, which means you can expect the resale value of your home investment to go up once your plumbing project is complete. Your insurer will need to adjust your coverage limits to reflect this change in property value, which will likely increase your premium.
2. Maintain the Terms of Your Coverage
Many homeowners think it’s enough to simply pay their premiums on time. However, National City home insurance policies are complex contracts between insurers and policyholders. Certain actions and certain forms of inaction may be violations of your policy. Making major alterations to a covered property without informing your insurance provider of your plans is an action that commonly results in these types of problems.
3. Get Details on Coverage Requirements for Contractors
Almost all homeowners know how important it is to hire contractors and companies with adequate licensing and insurance. If you make the mistake of hiring an unlicensed and uninsured professional or one who happens to be underinsured, you could be liable for any damages these professionals cause or sustain. Moreover, the company that has issued your policy may cancel your plan, leaving you scrambling to find new coverage of your own. Talk with your insurer to learn which coverage types and limits are expected of contractors so you’re always in compliance with your plan’s terms and conditions.
4. Avoid Alterations to Your Risk Profile
It is also important to note bathroom additions and the process of installing them can alter your risk profile. If you have incredibly extravagant additions planned for your bathrooms, these may even render your property uninsurable by your current provider. Cutting edge water features and high-value appliances are just some of the additions that might cause concern. More commonly, increased risk is due to the challenges of the installation process. If a pipe should burst or leak as the result of these alterations, it’s best to have notified your insurance of the renovation in advance. Insurance companies know major changes in any portion of the home, especially those affecting plumbing connections, can result in latent damages like hidden or slow leaks that aren’t discovered until several months down the road. Advanced knowledge of planned changes can help your insurance provider determine culpability if and when problems do occur.
To learn about additional home improvements that can affect your home insurance, get in touch with American Tri-Star. We can provide a free quote on homeowners insurance as well as our premier National City cheap auto insurance. Call 619-474-3900 today to speak with one of our friendly agents.