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Since home remodeling can increase your home value, you might need to increase your homeowner’s insurance after renovation. To determine how much insurance you need, calculate the repair value and check your current insurance policy. Keeping your homeowner’s insurance up to date is a great way to protect your investment in your Muscle Shoals home. Here are three steps when increasing your home insurance:
The first step is to identify your new home value after renovation because it determines how much insurance to add to your policy. For example, renovating your kitchen will significantly increase your home value more than adding one door to a closet. Additionally, even a new entry door or vinyl siding can increase the value of your home. So, your insurance needs to reflect the value of your home.
Next, check your current policy to see how much extra coverage you have. For instance, adding a new bedroom to your home requires more insurance than replacing your windows because a new bedroom is more expensive to insure. If you finished a small renovation, then your insurance might already cover the increase in value. Contact your insurance agency for the most accurate results.
Although your insurance policy may not require you to notify your insurance agent after a home renovation, you should check with them, anyway. This is the best way to protect your new investment.
Worried that the renovation could increase your monthly insurance premium? Remember that the increase in home value could potentially offset the new insurance costs. Some home improvements, such as new vinyl siding and replacement windows, have a significant return-on-investment. If your homeowner’s insurance increases after renovation, you could still profit later if you decide to sell your home.
Considering adding new doors and windows for a renovation project? The professionals at Window World of Muscle Shoals would love to work with you to help design your dream home. We offer plenty of products and finishes so that you can find what works best for you. Contact us today to get your free quote.