Can My Homeowner's Insurance Help With Renovations?

​Certain factors are taken into account when you file for home insurance. For example, its structure, location, and current condition. Over the lifetime of your home, there will be a lot of changes and possibly even damages. What if you need to do some remodeling? Does your current coverage help with the costs for renovations?

What To Do Before The Renovation?
It’s advisable to contact your agent when you start with your house remodeling. Why? If you are remodeling and making your home significantly more valuable, it could lead you to be underinsured. 

For example, if you have an insurance coverage policy that gives you a payout of $300,000 as the value of your home, and you choose to do renovations that make your home worth $370,000 and something happens to your home before you change your policy - you will not be reimbursed the difference.

It means that if you do not evaluate or extend the limitations on your insurance, you will be responsible for any expenditures not covered by your package offer.

What Are The Available Policy Changes?
Before you begin construction on your home, you can consult your insurer about the available changes you can take advantage of. The list below will provide you with varied options.

1. Increase Amount of Insurance
   Your insurer can assess and predict your potential home value and change your coverage limit to include your renovations.
   
   
2. Increase Amount of Liability Insurance
   If you increase the liability insurance amount, there is a lesser chance you’ll get sued if an accident occurs on your property.
   
   
3. Increase Personal Possessions Insurance
   Any brand new valuable items you have can also be insured. Some examples are artworks and comic books.
   
   
4. Add Dwelling Under Renovation
   This type of coverage will help protect your project materials and en route properties to your house. 
   
   
5. Add Vacation House Coverage
   If you need to live somewhere else, say your vacation home, you can add this to your insurance. This way, you’ll get covered should an unexpected event happen.

Conclusion
Your insurer will cover your renovation plans, but if there are high and unaccounted costs, you’ll most likely be underinsured. This is why you have to consult with your agency before starting the construction. 

At Kapasu Insurance Services Inc., we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (760) 995-3853 or Click Here to request a free quote. Coverage discussed in this article is not guaranteed. Please contact our agency to go over your existing coverage. We are happy to help you make sure your needs are being met!