Renovations are always a good idea because these types of projects will increase the value of your home. If this is something you are planning on doing, you may be wondering about your home insurance and how it will change, and the following guide will provide you with these answers.
If you’re not sure whether or not you should notify your insurance company before you start the renovations, the answer is yes, you definitely should. Most home insurance policies only protect homes against damage or loss from unexpected events, so renovations would not be included. If your property were to be damaged during the renovation process, your home would not be covered, so you need to notify your insurance company about these projects to ensure you are covered. You may have to take out additional insurance as well, so it’s important to reach out to your current home insurance company to finalize these details.
If your home is going to be vacant during the renovation, you may need to change your coverage, so you would have to contact your insurance company about this aspect. Most home insurance policies are only valid if you are living inside the house full time, so if you have to move out temporarily during the renovation process, you would have to contact your insurance company so that they are aware of the situation and do not think you are breaking their policy requirements. Some insurers will provide the homeowner with a vacancy permit so that their coverage remains valid.
Once your renovations are complete, you will have to update your insurance. You will have to let your insurance company know about all of the renovations that were done because these may change the value of your property along with the amount it would cost to replace your home and its contents. It’s important that your information is up-to-date so that you receive the best coverage possible and this will only be the case if you contact your insurance company after your home renovation.
If you’re interested in lower insurance rates, there are a few renovations that can help in this regard. Installing a new alarm system, updating old plumbing and electrical wiring and the addition of a new roof are all examples of renovations that will lower your insurance rates. This is because these types of projects make a home safer and more efficient, so there are fewer risks involved. A new heating system or air conditioning system will also lower your insurance rates because they will make your home more energy-efficient.
It’s always important to work with reputable contractors because this will make the renovation process smooth and stress-free. The experts at Virtual Homes can help you with all of your home renovations and whether you are looking for custom home builders or an interior designer, we do it all, so if you are in the Toronto area, contact us today!