Updating your home can be an exciting and rewarding experience. Whether it means afresh coastal-inspired bathroom in your classic Cape Cod cottage, or a complete new, gourmet kitchen perfect for the South Shore suburbs, a home update will make your home look nicer, feel fresh, and on top of that, usually be worth more!
In many cases, after a remodel, you should take a minute to check in with your insurance agent to see if you need to update your policies. Here’s why:
If you update or remodel your home, you could increase the value to the point where your current insurance policy doesn’t fully cover it. Your policy is probably set to cover your house as it was when your policy started and will not account for the added value from the remodel.
Other home updates could actually end up saving you some money on your premium, something you’ll want to take full advantage of. Keep in mind the materials that are used during any remodeling or updating, this is something to make note of as it affects the worth of your home. Also be aware of all the new items you may purchase for an updated space. With the addition of valuable new appliances or upgrades, you’ll want your policy to reflect this.
Generally speaking, remodels and upgrades will increase the value of your home, so you’ll want more coverage in your policy to make sure you’re still fully covered. There are some projects to pay special attention to:
- Roof – Updating your roof not only adds value to your home, but it can also save you money in the long run. Depending on the “resistance rating” of your roof, you may receive a discount on your premium. The resistance rating is based on the materials used on your roof, and ranges from one to four. The higher the rating, the bigger your chance for a discount. Talk to your roofing company and see the options available to you. Some carriers even offer additional credits for a roof less than five years old, so ask your agent to see if you qualify.
- Home Security Systems – More advanced home security systems are becoming widely available. These systems not only monitor your home for signs of crime, but also help detect signs of fire or water damage. It’ll depend on your system, and your insurer, but you may receive a discount if you have one. Large credits can be available if you have a leak detection and automatic water shut-off system.
- Pool – Pools are a great, fun addition to any home, but they do unfortunately bring some extra risk. Pools are something insurance companies usually refer to as an “attractive nuisance.” These are items or structures that could entice a child to come onto your property and potentially injure themselves. Because of this, your new pool creates more personal liability for you. You’ll want to inform your insurer of a new pool so they can adjust your policy accordingly for any new risk, as well as value. Oftentimes, your insurer will also require you to properly fence in and possibly cover the pool.
- Plumbing/Wiring – Old plumbing and electrical wiring are large sources of house fires. Replacing and updating these can reduce your overall risk as well as the cost of your premiums.
Your home’s new look is something you worked hard for, be sure it’s fully protected, and that you’re saving all you can. Be sure to talk to your insurer about your homeowners policy after doing any remodeling or upgrading. Contact an R&G agent below to make sure you’re saving all you can.
Vice President | Personal Insurance
Dave is a Vice President in the Personal Insurance division at Rogers & Gray. Living and residing on Cape Cod, Dave serves many of R&G’s finest clients in the Upper Cape region and on Martha’s Vineyard. Dave’s approach to working with a new client is simple… he listens. He believes that as a dedicated insurance advisor it is imperative to take the time to listen to client’s concerns and to what is important to them in order to properly safeguard their property and family. Dave resides in Cotuit with his wife and their children. You can connect with Dave on LinkedIn or by email.