If you’re planning to build an addition, your existing homeowners insurance policy might not provide the right types and amounts of coverage. Contact your homeowners insurance company to discuss how your needs will change and make sure that you have the right coverage in place before contractors get to work.
You Might Be Penalized If You Don’t Tell Your Insurer About Your Plans
Your current homeowners insurance policy might contain a clause that requires you to notify the company before any renovations begin. If you don’t and you have to file a claim, you might be required to pay a higher deductible.
You Might Need Extra Coverage While the Addition Is Being Built
Houses that are being constructed or renovated are appealing targets for thieves. Review your personal property coverage limit and make sure that it’s appropriate for your needs.
Dwelling under renovation coverage can protect you if the property gets damaged, materials get stolen, or something else goes wrong while your addition is being constructed. You might want to increase the liability coverage in your homeowners insurance policy or buy builders risk insurance to protect you in case there is a lapse in the contractor’s insurance policy or the company doesn’t have adequate coverage limits.
Vacant homes are riskier for insurance companies to cover. They’re more likely to be targeted for theft and vandalism, and it can take longer for someone to detect a problem, such as a leak or a fire, and respond. That means the risk of significant damage (and an expensive insurance claim) is higher. If you’re planning to live somewhere else while the addition is being constructed, you might need to get an endorsement or a different policy specifically designed for a house that’s vacant or unoccupied.
You’ll Need More Coverage After Your Home Is Renovated
A larger house will cost more to rebuild if it gets destroyed. If you add another room, you’ll also have more furniture than you did before the renovation. Your insurance agent can help you select new dwelling and personal property coverage limits that fit your changing needs.
Shop Around to Find Affordable Coverage
Raising your insurance limits can lead to higher premiums, but there are ways to keep your rates within your budget. When you contact your homeowners insurance company, find out if you qualify for any discounts. For example, you might be able to save money by bundling your homeowners and auto insurance policies, or you might be eligible for a discount because of the company you work for or an organization you belong to.
If it will cost a lot more to insure your house after the addition is built, you might want to switch insurance companies. Get quotes from several insurers to find the coverage you need at affordable rates.
