As a homeowner, maintaining proper insurance coverage is essential to protect your investment. However, many homeowners overlook the importance of adjusting their coverage after significant events like remodeling or changes in building costs. In fact, a recent survey revealed that only 30% of insured homeowners had increased their coverage to account for rising building costs, and about 40% updated their insurance after completing renovations or a remodel.
Rising Construction Costs and Your Coverage
With construction costs increasing due to inflation, material shortages, and supply chain issues, your current home insurance policy may not be enough to cover the cost of rebuilding your home after a disaster. Homeowners who have not adjusted their coverage could face financial hardship if they need to repair or rebuild.
Why Updating Your Home Insurance Is Crucial After a Remodel
Renovations, whether it's upgrading your kitchen, adding a bathroom, or building a deck, can significantly boost your home's value. Unfortunately, if you don't update your insurance policy after these changes, your new additions may not be covered in the event of a fire, storm, or other loss. It's vital to reassess your coverage after any substantial improvement to ensure your policy reflects the current value of your home.
Steps to Ensure You're Adequately Covered
- Review Your Policy Regularly: Make it a habit to review your homeowners insurance policy at least once a year, especially if you've done any remodeling.
- Get an Appraisal Post-Remodel: After completing renovations, hire a professional to appraise your home to determine its new value.
- Communicate with Your Insurance Agent: Work with your insurance agent to adjust your policy to reflect the current market conditions and increased home value.
The Hidden Risks of Being Underinsured
Being underinsured can have serious financial consequences. If your current coverage doesn't account for the increased value of your home after renovations, you could be left paying out-of-pocket for repairs or rebuilding. Additionally, underinsuring your home may delay the claims process, as insurers will need to reassess the true value of the property. By staying proactive and adjusting your insurance after each major improvement, you not only protect your home but also avoid the potential stress and financial strain that can come with being underinsured.
Don't Wait for a Disaster
Disasters often strike without warning, and the last thing you want is to discover that your insurance doesn't fully cover the cost of rebuilding or repairing your home. Proactively updating your homeowners insurance will give you peace of mind, knowing that your investment is protected no matter what happens.
Don’t Wait to Update Your Coverage
Being proactive about your home insurance coverage is the best way to protect your home and your financial future. If you’ve recently completed a remodel or haven’t reviewed your policy in a while, now is the time to act. Contact your insurance agent today to ensure your coverage reflects the current value of your home and gives you the protection you need.
Ready to review your home insurance? Reach out to us, and we can connect you with trusted insurance professionals who can help you make sure your investment is fully protected.
