Home renovations can breathe new life into a house, becoming a personalized haven in and around Milwaukee, WI. However, these transformative changes can significantly impact your home insurance coverage. As you embark on home renovations, it’s crucial to understand how alterations can affect your policy and take proactive steps to ensure that your coverage aligns with your home’s updated value and risks.
The Impact of Renovations on Insurance Coverage
Home renovations can impact insurance coverage in various ways:
- Change in Home Value: Renovations often increase the value of your home. The added square footage, upgraded features, or new additions can significantly raise your home’s worth, which calls for more coverage.
- Alteration of Risk Factors: Renovations can introduce new risk factors. For example, adding a swimming pool, outdoor kitchen, or wood-burning fireplace could increase the risk of accidents or property damage.
Updating Your Home Insurance Policy
To ensure your home insurance adequately covers your renovated property, consider the following steps:
- Notify Your Insurer: Discuss the scope of the renovation project and any changes that might affect your coverage needs.
- Reassess Your Coverage Limits: Work with your insurer to reevaluate your coverage limits based on the increased value of your home.
- Consider Additional Coverage: Depending on the nature of the renovations, you might need additional coverage, such as liability coverage for new structures or specialized coverage for valuable renovations.
- Review Deductibles: Discuss potential adjustments to deductibles to ensure they align with your new coverage needs.
- Document Changes: Keep detailed records of the renovation process, including receipts, invoices, and photographs, which are invaluable to claims.
Dern & Company Can Help You
At Dern & Company, we can answer all your questions concerning home insurance. We assist the Milwaukee, WI region. Contact us today.