Considering renovations: a checklist for homeowners part 2

August 8th, 2014 by admin

We recently wrote a blog post with a checklist for homeowners considering renovations. Key steps included notifying your insurance provider before you begin any renovations, getting your new home's estimated replacement value, understanding the policy regarding vacant homes, researching contractors prior to hiring and completing a written contract. 

One area we want to expand on is how renovations impact your home's value, in particular premiums and coverage. 

Major kitchen renovations, for example, often affect the replacement costs of your home. It is important for homeowners to check that they have replacement coverage on their policies. In particular, they should ensure that the amount of coverage accurately corresponds to the costs and value of the newly renovated home. 

In addition, homeowners who are considering transforming an unused room into a home office will also want to examine their policies. This is because most standard policies do not cover accidents or theft for property used for business insurance, something typically covered by property and commercial insurance. However, you can easily ensure that your home office is covered by extending your coverage, or buying an additional policy if you prefer. 

Another renovation that will affect your insurance rates is installing a pool, which may increase homeowner liability, as well as home replacement costs.

Whenever you plan on performing renovations to your home, it is important to notify your insurance provider. For answers related to all of your home and auto insurance needs, contact the experts at Fundy Mutual. One of our experienced home insurance brokers will be happy to help you.