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There are many reasons to consider updating your home. Perhaps you are a new empty nester or your family is growing and you need to add a little more living space. Maybe you are just tired of a drab kitchen and an outdated color scheme. Or, perhaps you have come into a recent windfall and decided to update your HVAC system or replace your roof.
No matter the reason, there is one very important aspect you cannot afford to overlook, your insurance. Home updates can impact your coverage needs and premium costs. Failing to factor in these changes could leave you uninsured, underinsured, or paying too much.
Here are just a few examples of home updates that could impact your insurance needs. Consult your agent before starting these or similar projects.
Replacing Your Roof
Many people give little thought to their roof until it is damaged. This can be a costly mistake. According to the Insurance Information Institute, the average claim for water, wind, and hail damage to a roof was $18,258 between 2012 and 2016.
Older roofs are more likely to suffer damage from inclement weather. As a result, most insurance companies consider homes with aged roofing as being high risk and charge higher premiums accordingly. Having a new roof could not only save you from suffering expensive damage, but also lower your monthly insurance costs.
Updating Your Heating System
Updating your heating system can be a very smart investment. Heating accounts for 35-50 percent of the average American home’s annual utility costs, so the expense of updating an older heating system can lead to savings in the long term.
A more efficient heating system can not only lower your monthly utility bills, but also make your home safer. Heat pumps are considered the safest type of heating system.
Creating More Living Space
Whether you are converting your garage into an extra room or putting an addition onto your home, you are creating more livable space and could be increasing your home’s value. Failing to report your renovation to your insurance company to adjust your coverage could leave you underinsured. It may cost you a few dollars more on your premiums each month, but inadequate coverage is risky.
Remodeling Your Kitchen
One of the most common home upgrades is remodeling of kitchens. According to Home Advisor, the average person in the United States will spend $22,885 (or $150 per square foot) on a kitchen remodel. Prices run from $75 to $250 per square foot depending on the size of the space, the extent of the work performed, and the location of the home.
According to Remodeling Magazine’s 2018 Cost/Value report, an updated kitchen can not only make your home more livable ,but can increase its value by anywhere from $17,000 to $67,000 depending on the features installed.
Increasing the value of your kitchen and appliances impacts the replacement cost of your home, so you should adjust your insurance coverage appropriately.
These are just a few of the more popular home renovation projects that can impact your insurance costs. Others, such as installing a pool or alarm system, can have an even greater impact on your insurance premiums and needs.
Consult your agent before making any major changes to your home to find out if and how it will affect your insurance needs.
No matter the reason, there is one very important aspect you cannot afford to overlook, your insurance. Home updates can impact your coverage needs and premium costs. Failing to factor in these changes could leave you uninsured, underinsured, or paying too much.
Here are just a few examples of home updates that could impact your insurance needs. Consult your agent before starting these or similar projects.
Replacing Your Roof
Many people give little thought to their roof until it is damaged. This can be a costly mistake. According to the Insurance Information Institute, the average claim for water, wind, and hail damage to a roof was $18,258 between 2012 and 2016.
Older roofs are more likely to suffer damage from inclement weather. As a result, most insurance companies consider homes with aged roofing as being high risk and charge higher premiums accordingly. Having a new roof could not only save you from suffering expensive damage, but also lower your monthly insurance costs.
Updating Your Heating System
Updating your heating system can be a very smart investment. Heating accounts for 35-50 percent of the average American home’s annual utility costs, so the expense of updating an older heating system can lead to savings in the long term.
A more efficient heating system can not only lower your monthly utility bills, but also make your home safer. Heat pumps are considered the safest type of heating system.
Creating More Living Space
Whether you are converting your garage into an extra room or putting an addition onto your home, you are creating more livable space and could be increasing your home’s value. Failing to report your renovation to your insurance company to adjust your coverage could leave you underinsured. It may cost you a few dollars more on your premiums each month, but inadequate coverage is risky.
Remodeling Your Kitchen
One of the most common home upgrades is remodeling of kitchens. According to Home Advisor, the average person in the United States will spend $22,885 (or $150 per square foot) on a kitchen remodel. Prices run from $75 to $250 per square foot depending on the size of the space, the extent of the work performed, and the location of the home.
According to Remodeling Magazine’s 2018 Cost/Value report, an updated kitchen can not only make your home more livable ,but can increase its value by anywhere from $17,000 to $67,000 depending on the features installed.
Increasing the value of your kitchen and appliances impacts the replacement cost of your home, so you should adjust your insurance coverage appropriately.
These are just a few of the more popular home renovation projects that can impact your insurance costs. Others, such as installing a pool or alarm system, can have an even greater impact on your insurance premiums and needs.
Consult your agent before making any major changes to your home to find out if and how it will affect your insurance needs.
