The homeowner's insurance policy you have for your home covers it in the condition it is currently in and with the features it currently has. Because of this, it is important to update your policy if you complete any types of remodeling projects in your home, and here are three good reasons you should do this.
Your projects may have added value to your home
The top reason to call your insurance company after remodeling your home is to make sure your house is fully covered. If your house was worth $200,000 before you remodeled it, it may now be worth $225,000, depending on what you did to your home. If the house only had $200,000 of coverage, you would need to increase your coverage to reflect the new value of your home. Almost any project you complete can add value to your house, so you should always contact your insurance company when completing projects around your house simply to make sure you have enough protection.
Your projects may have reduced your risk level
Secondly, certain things you do to your home might decrease your risk level, and insurance premiums are highly based on risk level. For example, if you compare the rates of two homes that are identical but one has an old roof and one has a new roof, you will see that the rates of the home with the new roof are lower than the other house. This is because a new roof reduces risk levels, and a reduced risk level will lead to a lower premium on your insurance policy. There are many other projects that can also reduce your risk level, including adding new locks to your doors or installing security equipment.
It is a good idea to contact your insurance company periodically
The other reason to consider doing this is because it is just a good idea to update your policy from time to time, and many people forget to do this. If you get into the habit of contacting your insurance company anytime you make changes to your house, you will always have a policy that reflects the true value of your home, and this will result in you paying the right amount of money for your premiums.
If you have not updated your policy recently, now might be a good time to do this, and you can begin by contacting your home insurance company.
Share20 February 2019
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