Home renovations can be a source of excitement and energy for homeowners in the spring season. To help homeowners understand the insurance implications of renovation plans, we have put together this quick overview.
Planning spring renovations? Read this first
Home renovations can be an incredible way to increase the resale value of your home, lower your bills, and improve quality of life. Adding that extra bathroom for the kids or finally upgrading from the original furnace system can really reduce your daily stressors!
As you work on building out your spring renovation plans, consider the effect these updates will have on your insurance. The key to understanding these implications is to consider the overall risk exposure of your home. Will your renovations reduce the risk of weather-related damage, help prevent wear and tear, or improve security? Or will they increase your risk for flooding?
Insurance premiums will vary accordingly. Before your start your renovations, it is important to call your broker. We have outlined the important details of what to share with your broker below.
What is a Renovation?
Let's kick off the list with a definition. A renovation is the process of improving a broken, damaged, or outdated structure. If the project involves the alteration of a space for a new look, feel, or size, you can bet that it’s a renovation!
Top five home renovations that your broker should know about:
1. Roof
A new and improved roof helps reduce the risk of both weather and structural damage which will then lower your chances of making a claim. This renovation can also increase your resale value.
2. Added square footage
Congratulations! You are adding to the value of your home by increasing the number of bedrooms, bathrooms or living spaces. If something were to happen that damaged this area and you haven’t told your broker about it, this area will not be covered by your home policy.
3. Pool or hot tub
Swimming pools are a great feature for a backyard. Unfortunately, pools are considered an “attractive nuisance”. An attractive nuisance is anything that might attract a child and pose a threat, which means that it will increase your liability risk.
4. Alarm system
Smart home automation gives you the power to remotely control everything in your home. This includes your security cameras as well as your lighting, appliances, and home comfort systems. As a homeowner, this gives you the ability to keep in touch with your home, yard, family, or pets when you’re away.
5. Finished basement
If you’ve finished your basement, you have added value to an area of the home that may be subject to flooding. You may also have added a sump pump or backwater system. Sump pumps and backwater valves have the potential to get you a discount on your home insurance policy! This is because they help to prevent future damage.
What does your home insurance protect?
If you are not sure what your home insurance covers, we invite you to talk to an insurance brokers at one of our five different offices today to review your home insurance policy.