3 Reasons To Update Your Homeowner's Insurance After Completing Home Renovations

Completing renovations to your home can be an exciting event that could involve a lot of different things, and when you make renovations to your home, you should always update your homeowner's insurance policy. If you are wondering why this is so important, here are the top three reasons:

Your house might now be worth more money

Renovations to a home might include a complete kitchen remodeling project, an addition to the home, basement finishing, or creating an exterior kitchen area. There could be a lot of other types of projects that also fall into the category of home renovations, but most home renovations have one thing in common – they add value to a house.

When you complete a project that adds value to your house, your current home insurance policy may no longer be sufficient. This means that you will not be fully covered with your insurance if you do not make changes to your policy after completing the projects around your house.

You might have a change in risks

Secondly, certain types of renovations can affect the risk levels you have, and this is also important for insurance purposes. For example, adding new doors that have deadbolts in them could reduce the risks to your home; in this case, you might get a discount on your policy. Other renovations could increase the risks you have, such as adding a hot tub in your back yard. When risk levels change, you should update your policy so that it reflects your current risk level.

You might need to add riders

Finally, you should update your policy simply to ensure that you have covered everything you own. For example, if you add on a room to your home that is a game room and then purchase a lot of expensive games, you may need to add a rider to your policy to protect these new games. A rider is an add-on to a policy that provides coverage for a certain stated item. In this case, your rider would cover every game you purchased. There are a lot of reasons to add riders, and you should make sure you add any that are necessary after completing your home renovations.

As you can see, renovations to a home may affect the insurance you need and the rates you pay. If you are interested in finding out how much homeowner's insurance will be after making renovations, call an insurance agency today.

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