Not all renovations have the same impact on your rates. Keep reading to learn more about how home renovations can affect your insurance, some of the common misconceptions about renovations and homeowners insurance, and what you need to tell your insurance provider to make sure you’re covered.
The impact of renovations on your homeowners insurance
Home renovations can have either a positive or negative impact on your rates, depending on the type of work being done. Your home’s insurance policy is based on specific calculations about its structure and use, so anytime there is a change you’ll need to update your insurance plan to make sure you’re properly covered.
Myths about home renovations and your insurance
The impact that renovations will have on your insurance rates depends entirely on what you’re renovating and why. Let’s look at a few examples of some common misconceptions that people have:
- Myth #1: Renovations won’t affect my rates at all
It depends on the type of renovation. Painting your bedroom fuchsia won’t have any impact on your insurance but other simple changes might. For example adding an alarm system, adding or updating sump pumps and back water valves or installing a new roof are renovations that can lower your rates. On the other hand, installing high-end custom appliances could mean that you need to increase your coverage to properly protect your belongings.
- Myth #2: I won’t need to change my policy until renovations are complete
Your current homeowners insurance policy may not cover you at all when your home is under construction. You need to let your Edmonton insurance company know before you begin renovations so that you will still be adequately covered in the case of an emergency or natural disaster.
- Myth #3: The construction crew carries their own insurance
This may be true to a certain extent but if a construction worker is injured while working on your home renovations, you could still be liable. Before hiring a contractor to work on your home, make sure you are aware of your insurance obligations.
Keep your coverage up to date
Keeping your insurance company in the know about any home renovations you’re planning is the best way to make sure that your home and your valuables are properly protected. This is especially true for renovations involving expansions, plumbing, wiring and your roof.
For more information about renovations and your homeowners insurance, call MBS Insurance Brokers in Edmonton today. With almost 50 years in the insurance business, we understand exactly how to get you the coverage you need at a price you can afford. Contact us today to learn more or to get a free quote.