Whether you have completed small fixer-upper projects or full-blown additions, it's important to report any updates to your insurance agent so your homeowners insurance policy is as up-to-date as possible. Here's why.
Certain home improvements can save you money on your homeowners insurance policy...
It's true: there are certain home improvement projects that can actually save you money on your insurance. For example, you can save up to 5% with certain policies when you install a home security system with proof of purchase. You may also be able to save up to 5% when you replace your roof, depending on your carrier. On the flip side, the age of your roof may actually restrict or limit the coverage you have. While the age of your roof is more of a factor when shopping for new insurance, a newer roof may provide a better rate.
...while other updates require an increase in coverage.
If you have completed larger renovation projects that have increased your home value by 5% to 10%, it's important to report them to your insurance carrier.
Perhaps your family has built a new playroom or extended your back deck. If the value of this addition is more than $5,000, it may not be covered if you don't report it. That's because you have added significant square footage to your property and have increased the value of your home, which requires updated coverage for the right protection.
You may also need to update your policy if you have added new outdoor entertainment that increases the risk for personal injury. A new swimming pool or a trampoline, for example, are additions that can increase the risk of injury on your property. You should report these additions to your agent in order to have ample liability coverage in case of an accident.
Lastly, you should report any updates to the number of people (or furry friends) living with you in your home. Whether your family has welcomed a new baby or has sent a child off to college, these changes in your household should be communicated to your agent so he or she can update who is covered under your current policy. This advice goes for pets too: if you have adopted a dog to help keep you company during quarantine, we may recommend additional limits on your homeowners or umbrella insurance policies.
Conclusion: report any home updates to your insurance carrier.
It's a great feeling to cross off much-needed home improvements from your to-do list. But as you do, don't forget to update your insurance agent on what you have changed. The goal of updating your policy isn't so that you have to spend more money. It is to make sure you are covered in the event of an accident or unexpected damage. If you don't report your new home improvements, the new space may not be covered in your existing policy. After all, you invested your time and money into making those home improvements. You want to make sure you insure your property appropriately!