Planning a major home remodeling project is a big investment that requires careful consideration. When built properly by experienced home remodeling contractors, they become a great way to add value to your home and make it more convenient. But you should also keep in mind the impact remodeling projects can have on the other aspects of your home, especially your homeowner’s insurance. It’s important to inform your insurance company about your remodeling project to make the necessary adjustments to your policy.
However, you might be left wondering whether the increased insurance rates that come with home renovations are worth the investment.
Additional Coverage for Your Remodel
Typically, any kind of significant home renovation can increase your home’s value. Let’s say your home is insured for $400,000, and your remodeling project is set to increase its value by around $50,000. Your insurer will first determine this, then recalculate your policy’s coverage limit to $450,000. The increased insurance rates are worth the investment since you’ll be covered in case of an accident or natural disaster. Of course, this will still depend on what type of coverage you already have in place as well as the type of renovation you’re planning for your home.
Common Renovations That Increase Your Insurance Rate
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Kitchen/Bath Remodel
Any major bath or kitchen remodeling project significantly increases your home’s rebuild value. Whether you want to change your quartz countertops to marble or plan to replace your cabinets and floors, your insurance policy must be updated accordingly.
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Roof Replacement
Most insurance policies’ premiums will be reduced when getting a new roof. This helps you save money while your home is also better protected with new materials. You may even be offered a discount, but your coverage limit will still likely be recalculated.
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Room Addition
You’ll likely consider this type of home remodel if you want to accommodate your growing family’s needs. Expanding your living space through home renovations also increases insurance rates since you’ll need additional coverage.
As a specialist among new addition contractors, Design Build Remodeling Group of Maryland knows what’s best for your remodeling project. If you live within Bethesda or the neighboring areas, call us today at (443) 300-2268, or reach us online through our contact form.
