Over the years, you may make home improvements or renovations to your Ada, OK home that alters your home insurance coverage. By reviewing your policy with Moon – Baker Insurance Agency, Inc. you can see if you need to update your coverage to maintain the protection you need. Here’s how home renovations affect home insurance coverage.
Raise Home Value
Major renovations like a kitchen remodel or increasing living space can increase your home’s value. If you insured your home for a certain amount when you first purchased it, you may need to increase the limits of your policy to fully protect your home at its new value. Otherwise, you could fall short of insurance coverage if a disaster were to totally destroy your property. You’ll also need to add your renovations to your policy so they’ll be protected against unforeseen disasters.
Change Premium Costs
Insuring your home for a greater value and adding renovations to your coverage will increase the cost of your policy. You should be prepared to pay more for the extended protection you need due to changes in your home structure.
On the flip side, home renovations like a new electrical or plumbing system reduce your risk of water and fire damage. This could make you eligible for a discount on your home insurance costs. In like manner, you may qualify for a discount if you install a home security system in your Ada, OK home to improve the safety and security of your property.
Increase Liability Risk
Adding a pool to your property is a major renovation that will increase your liability risk of accidents. You may need to raise your liability limits to protect yourself against lawsuits that may arise due to a pool accident.
For more information about renovations and home insurance, contact Moon – Baker Insurance Agency Inc.