Home purchasing is one of the most significant investments you'll make throughout your lifetime. You may be focused on starting a new renovation project in the near future. You may have noticed that parts of your home are starting to break down and need to be replaced. These potential home renovations will help you generate a high return on investment if you plan to sell. However, one variable that should be considered is how the renovations may impact your home insurance. Here's a look at popular home renovation projects and how they impact home insurance policies.
- Kitchen or Bathroom Upgrades
A recent study showed that considerably upgrading the kitchen or bathroom can increase a home's property value. Be aware that these projects generally result in higher home insurance rates. High-level upgrades generally require increased dwelling coverage. This means you'll pay higher premiums. You may need to increase your coverage limits to proceed with the project. In this situation, you'll be forced to pay for repair costs out of pocket unless you amend your home insurance policy.
- Roof Replacement
Replacing your roof can help lower your home insurance premiums. Installing a modern roof lowers your home insurance costs because your new roof has more robust materials. You may even qualify for a home insurance renovation discount because your new roof may help prevent your home from being damaged by inclement weather. You should speak with your insurer to assess your coverage options.
- Installing a Swimming Pool
Installing a swimming pool increases your home's property value by adding an exciting amenity. However, your home insurance rates will increase because swimming pools risk significant liability. While liability insurance protects you if someone is injured while using your swimming pool, it may not be enough, especially if the impacted party suffers severe injuries. Consider increasing your liability limits or purchasing umbrella insurance for extra protection. Other accessories, such as a fence or diving board, can increase your premiums.
- Installing Enhanced Security Systems
Installing a new security system should help you qualify for a discount. Insurers recommend installing home security systems because it reduces the likelihood of crimes, meaning fewer claims are filed.
- Installing New Wiring
You may have an older home with an outdated wiring system. Installing new wiring is recommended because it reduces the likelihood of system malfunctions that may result in a fire. There's also a chance you're legally obligated to install a new wiring system to meet housing requirements. While installing new wiring can be expensive, the costs are offset if you qualify for a discount. Many insurance companies offer a discount for installing new wiring because you reduce the chances of a potential fire.
Consult with John E. Peakes Insurance Agency
At John E. Peakes Insurance Agency, we understand the importance of comprehensive protection for home renovations. With our expertise, we'll guide you towards the perfect home insurance policy, ensuring you're fully covered in any scenario. Trust our team to safeguard your investment and provide you with peace of mind throughout your renovation journey. Contact us today for tailored insurance solutions that suit your needs and project requirements. You can directly ring us at 1-800-800-5199.