Home renovations have become increasingly popular in the United States, particularly in recent years. In 2020, over 50% of homeowners who undertook renovation projects were from the Baby Boomer generation, while nearly a third of those who renovated belonged to Generation X.
Although these age groups may possess considerable knowledge about home improvement, it's crucial for them to understand how modifications to their property can affect their insurance policies. An independent insurance agency, such as Downes Insurance Associates, can assist you in evaluating your homeowners insurance coverage in Delaware, Maryland, and Pennsylvania, especially in light of significant renovations. To get started, here’s an overview of six typical home renovations and their potential effects on your insurance coverage.
Six Home Improvements and Their Impact on Your Insurance
Modifying your home, whether by adding or removing a room, can alter your insurance requirements. Enhancements that boost your home's value or expand its square footage may necessitate an increase in your coverage limits. Additionally, there are various other ways that home projects can influence your home insurance that you should consider.
1. Undertaking Kitchen Renovations
If you're dreaming of a completely new kitchen, there are some important insurance factors to consider before you replace your countertops or cabinets: When hiring professionals like electricians or plumbers, ensure they are reputable and have their own insurance. Request proof of their contractor insurance and liability coverage before they begin any work in your home. Consult with Downes Insurance Associates to determine if you need to adjust your homeowners insurance coverage.
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Renovations that enhance your home's value may leave you underinsured if you don't increase your coverage limits. If friends are lending a hand with the renovations, discuss with Downes Insurance Associates the possibility of raising your medical expenses coverage in case of any accidents. Revamping your kitchen can be incredibly fulfilling, but it may require some adjustments to your home insurance beforehand. Be sure to review your policy with your independent insurance agent before diving into your kitchen transformation.
2. Revamping Your Bathroom
If you're considering a bathroom update, whether it's installing a stylish clawfoot tub, enhancing your vanities, or replacing the floor and shower tiles, there are a few important factors to keep in mind: You may need to hire a professional plumber to relocate plumbing fixtures like drains, sinks, or showers. Be aware that if any water damage occurs during their work, your homeowners insurance typically won’t cover it. However, reputable plumbers should have their own insurance, so be sure to request proof of coverage before they start.
If you're planning to purchase a significant amount of new materials for your renovation that will be stored at your home prior to the project, it's essential to have coverage for those items as well. Consult Downes Insurance Associates about adding a builder's risk policy to protect materials that haven’t yet been integrated into your home. Upgrading your bathroom can significantly boost your property's value. Therefore, it's wise touch base with your independent insurance agent to ensure your homeowners insurance reflects the enhancements made to your bathroom.
3. Transforming a Room into a Home Office
It might be the perfect moment to convert one of your spare rooms into a productive home office. While this project doesn’t involve a major expansion of your home, th
ere are several important factors to keep in mind:
If your new office will house a significant amount of equipment, be aware that many home insurance policies typically cover only up to $2,500 for such items. If you plan to store more than this, consult Downes Insurance Associates about adding a home business endorsement to your policy.
If you intend to run your entire business from home and are self-employed, you may require a comprehensive business insurance policy, especially if clients or business associates will be visiting your premises. Additionally, if you’re working from home for another contractor, verify that you are covered under their insurance policy and workers' compensation.
While home offices can be both convenient and fulfilling, they may also alter your insurance requirements. It’s wise to check with your independent insurance agent to ensure that your current coverage remains adequate once you start working from home.
4. Incorporating a Sunroom
Have you always envisioned basking in the sunlight from the comfort of your own home? Sunrooms not only allow you to enjoy more Vitamin D throughout the year, but they can also enhance your property's value. However, there are several important factors to consider:
When you add a new room to your home, you may need to adjust your homeowners insurance coverage. Since a sunroom increases both your home's value and its square footage, it's likely that you'll require additional coverage.
Consult with Downes Insurance Associates to explore potential savings on your home insurance after adding a sunroom. This could include benefits from installing solar panels or energy-efficient windows. Additionally, installing a secure exterior door with an alarm system might qualify you for a discount.
If you plan to have materials for the sunroom on-site before installation, consider inquiring about a builders risk policy to protect against any damage or theft during the project
. Your new sunroom can become a healthy and tranquil retreat in your home. Just remember to discuss any necessary adjustments to your home insurance with your independent agent before starting the project.
5. Completing Your Basement
If you've made the decision to transform your dusty basement into a functional space with carpeting, additional rooms, or even a sump pump to prevent water damage, you're embarking on an exciting project. However, it's essential to consult your Downes Insurance regarding your coverage, keeping these points in mind:
Inquire about vacant home insurance if you plan to be away from your home during the renovation. Consider adding water backup coverage, which is usually an affordable
addition to your home insurance, in case your new sump pump fails.
If you're planning to create new rooms, this could enhance your home's value, potentially necessitating an increase in your homeowners insurance. Adding features like a home theater, game room, or an extra bedroom can contribute to this increase.
Also, check to see if the improvements to your basement could lead to savings on your homeowners insurance. Upgrading plumbing, electrical systems, or security features might qualify you for new discounts.
A finished basement can offer you and your family a fresh area, or multiple areas, to enjoy. Just remember that any modifications you make may require adjustments to your insurance coverage. Downes Insurance will be able to guide you on the necessary updates to your policy as you discuss your basement renovation plans.
6. Constructing a Deck or Porch
Your family has decided it's time to enhance your outdoor area for enjoying the pleasant weather and fresh air, so you're planning to build a deck or porch. This undertaking can be quite significant and involves several important considerations:
Before you begin, you might need to obtain a permit for your deck. It's essential to consult your local regulations to ensure compliance before starting any work. Ensure that your health insurance is adequate before attempting this project on your own, as there is a risk of injuries from falls, tripping over materials, or straining yourself while lifting heavy items.
Request proof of insurance from any licensed contractors you hire, to protect yourself in case of any accidents. Talk to Downes Insurance about how adding a deck or porch could affect your home's value or square footage, which may necessitate an increase in your home insurance coverage.
Downes Insurance can help you understand if you need to adjust or update your current homeowners insurance policy due to the addition of a porch or deck.
Insurance Considerations for DIY Renovations
If you're planning to tackle home renovations on your own, it's wise to check your liability coverage beforehand. This type of insurance can help cover legal expenses if someone, like a friend assisting you, gets injured or has their property damaged while working at your home. Additionally, consider obtaining builder's risk insurance to safeguard valuable materials against theft, weather-related damage, and other potential risks before they are installed.
Embarking on home renovations can be incredibly fulfilling, whether you choose to hire professionals or handle the project yourself. Dream big about your home's transformation,
but remember to keep your insurance agent informed about your plans throughout the process. Your newly renovated home deserves an updated homeowners insurance policy that provides adequate coverage.
Why should you choose Downes Insurance for an Independent Insurance Agency?
Independent insurance agents make the insurance process easier by comparing quotes from various providers on your behalf. They also help demystify complex terms and conditions, ensuring you fully understand your coverage.
Moreover, independent agents like Downes Insurance Associates have access to a wide range of insurance companies, allowing them to find you the best home insurance options in terms of coverage, accessibility, and competitive pricing, all while prioritizing your needs.