Home renovations can be fun and exciting. However, they can also be costly as they can greatly affect your home insurance policy. If you’re planning to remodel your home in Dalton, GA, you may want to seriously consider checking with your home insurance company before starting the project to ensure you have the right amount of coverage. At AWARD Insurance Group, we recommend learning how each renovation affects your home insurance rates as some can lower while others may increase the rates.
Any home addition increases replacement cost
A renovation is meant to improve durability, enhance beauty, and increase your home’s value. When the value goes up, you can expect to earn some good profit once you sell the home. On the other hand, you will need to increase your coverage to match the home’s value as the replacement cost will increase. If you are going to add another room such as a home office, pantry, or extra bedroom, be sure to inform your insurance company to update the dwelling coverage.
Bathroom and kitchen renovation adds value and lowers your insurance premium
Many Dalton, GA renovations tend to go around the bathroom or kitchen. Upgrading any of these can cost you about 2 to 5 percent of your home’s total value, depending on the makeover and materials used. Remember, the more durable the materials, the lower your premium as insurance companies assume durable materials last longer and are less likely to be damaged by common accidents.
Installing a swimming pool increases your liability coverage
Adding a swimming pool can be a huge investment. However, your insurance company will need you to update different coverages such as bodily injury liability and property damage liability to cover for accidents such as drowning and injuries.
Looking to buy or update your home insurance policy? AWARD Insurance Group is here to take you through the steps and ensure you’re adequately covered. Call us today!