How Do Renovations Impact Your Home Insurance | IZC Insurance
February 21, 2024
The Excitement and Insurance Implications of Home Renovations
Embarking on a home renovation is an exciting venture. The prospect of transforming your living space is undoubtedly thrilling, but it's essential to consider the often-overlooked aspect — how these renovations can impact your homeowners insurance. Let's delve into the insurance implications of your home improvement journey.
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Assessing Coverage Gaps: What's at Risk During Renovations
As you tear down walls or expand your home, the risk profile changes. Standard homeowners insurance might not cover certain aspects of your renovation. Understanding potential gaps in coverage ensures that your investment is protected throughout the renovation process. Take a look at a few examples below:
1) Liability Exclusions:
Your homeowners policy not only insures your dwelling and personal items from property damage, but also provides liability coverage for your residence premises. Many policies include liability exclusions for hired workers on site, construction and renovations. Review your policy closely to see if these exclusions apply as your insurer may decline coverage for hired workers or others injured on your property during the course of your renovation.
2) Replacement Cost:
If you are adding square footage to your home or substantially increasing the value of your home through renovations, your current dwelling values might not be adequate to cover your new remodeled home. Be sure to review your coverages to ensure you are adequately insured.
If your primary home is undergoing a substantial renovations and you are not living there, your homeowners policy verbiage might exclude certain coverages. Your homeowners policy is likely based on your home being occupied as a primary residence, so if you aren't living there, coverages could be impacted.
Communicating with Your Insurer: Keeping Them in the Loop
If the coverage gaps listed above have you worried, the best way to avoid any issues is through open communication with your insurance provider. Notifying your insurance agent and your insurer about the renovations you are performing will allow them to adequately review your coverages and make changes if needed.
Sometimes the gaps in coverage or renovation hazard is so high that your insurer may not be willing to keep your policy active. If this is the case, partnering with a best-in-class independent insurance agency like IZC Insurance will allow you to shop the marketplace for a different insurance policy that can meet the changing needs of your household.
Ultimately, keeping your insurance carrier informed about your renovation plans allows for adjustments to your policy to accommodate the changing value and structure of your home. Failing to notify your insurer might result in denied claims or inadequate coverage.
Upgrading Security Measures: Renovations could impact theft coverage
If your home is vacant due to renovations, but your contents (furniture, belongings, etc) are still stored in the home, theft coverage on your homeowners policy might be limited due to the vacant occupancy. To protect your belongings, it is crucial to have a centrally monitored security system, cameras, secured windows and doors and other security measures present during your renovation.
In order to deter vandalism and other threats, a perimeter fence around your property with marked 'private property' and 'no trespassing' signs could be valuable. Clearly showing that the property is under surveillance could also protect against unwanted visitors.
Lastly, hiring a licensed, insured and reputable general contractor for your renovations will ensure that your property is adequately maintained throughout your renovations. By having a responsible party on site during all the renovation work, there is an added benefit of accountability for all subcontractors and hired workers.
Crafting a Comprehensive Insurance Strategy
Embarking on a home renovation is a significant undertaking, and understanding the insurance implications is an integral part of the process. By assessing coverage gaps, communicating effectively with your insurer, planning making increased security upgrades, you can ensure that your homeowners policy aligns with the evolving needs of your transformed home.
To best protect your home while undergoing renovations, partner with IZC Insurance agency by giving us a call at (404)-446-3427 or use our no hassle online submission form below. We are eager to serve you!
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