Remodeling your house is a fantastic way to customize your living space and even increase your property values. However, it can also affect your home insurance policies, potentially increasing or lower your premiums. If you’re planning a home improvement project, below are a few reasons to consider reviewing your insurance coverage.

Higher Property Values

Increasing the value of your home is one of the most attractive benefits of a remodeling project. However, after a major improvement, your home insurance policy may not have enough coverage to completely rebuild after a disaster.

For instance, your policy may be based on a $250,000 assessment of your property. If you undergo renovations that add $100,000 to the value of your house, you’ll still only receive the original amount if your home is destroyed in a covered incident. To ensure you can rebuild, have an agent review your policy after any major remodeling project.

Reduced Risk of a Claim

Many remodeling projects make your home safer, which translates to lower risk for home insurance companies. For instance, fire-resistant roofing materials can help contain the damage of a blaze, so your insurer may reduce your premiums. Upgrading the electrical and plumbing systems also minimizes the risk of potentially expensive accidents.

Because home insurance policies also cover personal possessions inside, upgrades to your security system can also bring lower rates. After installing cameras, outdoor lighting, or home automation technology, ask your agent to shop around for quotes.

Additional Risk

Some home improvement projects actually increase the chances of an accident or liability lawsuits. Installing a swimming pool is a lifelong dream for many homeowners, but it does come with the risk of injuries, which could lead to liability claims. To compensate for the higher risk, home insurance companies will typically charge higher premiums.

If you run a business or work from home, you might consider adding a home office to your home renovation projects. However, most home insurance policies specifically exclude business property and visitors coming to your house for commercial purposes. If your home doubles as a business location, your insurance agent may recommend purchasing additional coverage to minimize the risks.

For over a century, Somers Agency LLC has helped homeowners throughout Ohio’s Lorain County protect their most valuable investments. Whether you’re remodeling your home or buying your first house, their agents will find the coverage you need at the best rates possible. Visit their website for more on their home insurance services, or call (440) 324-3447 to request a free quote.