Home Renovation Projects that can Affect Your Insurance Policy

Sep 25, 15 Home Renovation Projects that can Affect Your Insurance Policy

Planning to remodel your home? Whether you’re preparing to sell your house, customizing it to add more rooms, or just for the sake of refreshing your living space, there are many reasons why homeowners may decide to launch a project.

Before you even begin to tear down walls and dismantling appliances, it is important to consider not just the initial costs of remodeling. Many homeowners are surprised to learn that renovating their house could actually have major impacts on future monthly dues, including home insurance.

If you are planning to launch any of the projects below, be prepared for additional monthly dues.

  1. Creating a home office

While it is a great idea to repurpose an empty room as a home office, you may need to get a separate home-based business insurance policy. Your existing home insurance policy will not cover any theft, accidents or other unwanted events that occur in a residential property used for business purposes. In fact, your provider may even cancel your policy if you filed business-related insurance claims but did not initially disclose your home-based business.

It is best to talk with your insurance provider about your plans of repurposing a room and setting up a home-based business.

  1. Total kitchen renovation

One of the most common home renovation projects is kitchen remodeling. While this project can arguably increase the value of your home, expect to pay higher premiums for your overall policy.

If you are hiring a contractor to do the renovation, be sure that the workers are covered with workers compensation insurance. You may end up paying out of the pocket if ever an accident happens in your property. Safety should always be top priority. It would help to choose a reliable contractor.

Check for insurance coverage. Inspect if they have good working equipment and tools, especially that machine-related injuries are very common in construction projects. You can use websites such as this to check if their air compressor, usually used for painting work, is still up-to-date. It pays to be meticulous.

  1. Adding a swimming pool

What could be more fun than installing a pool in the backyard? Everyone just loves playing around pools. But before you consider investing on a swimming pool, you should seriously weight the fun advantages and its associated risks to your insurance.

Having a pool in your property greatly increases the risk of accidents, which will also have a drastic impact on your insurance premiums. Most insurance providers would also require you to install safety precautions such as self-locking gates and perimeter fence before they consider selling you coverage. Due to its attendant costs, some experts discourage installing pools.

While not all projects will impact your home insurance policy, it is best to discuss with your insurance provider any renovation plans to avoid unexpected monthly dues.

Lastly, before you finalize your home renovation plans, it is best to ask yourself: Do I really need to renovate? This way, you can avoid regretting a costly home remodeling project!