Many remodeling projects can increase the value of your home in Lynnwood, WA, especially those involving upgrades to your kitchen or bathroom. Not only does the value of your home increase, but so does the rebuilding cost if your residence suffers damage or destruction from a covered risk. Securum LLC can help you determine the best coverage level for your home after renovations.
Why Update Coverage?
If you want the same quality materials incorporated in your renovations, rebuilding will cost more. Without adjusting your dwelling coverage (Coverage A), you could face out-of-pocket expenses to replace the improved structure after a covered loss. Additionally, your personal property values may increase. Some improvements also come with an increased liability risk. For example, building an in-ground swimming pool or a large above-ground model requires a review of liability limits. Similarly, constructing a guest house or rental unit may necessitate higher limits in case of accidents or injuries in these areas.
Steps to Take
Discuss the scope of your remodeling project and its potential impact on your policy with your insurer. Evaluate your current insurance to identify areas where you may need additional coverage. Document all changes by taking before-and-after photos of the renovation or addition. Depending on the work done, your insurance agent may recommend a renovation endorsement or a separate builder’s risk policy to provide proper coverage during the construction period. Increase coverage as needed once the project is complete.
Minor projects, such as new carpeting or flooring, typically don’t require additional insurance. Risk-reducing upgrades, like installing a security system, sprinkler system, or new roof, may even lower your premiums.
Discover which residential upgrades will significantly affect your home insurance by speaking with an agent at Securum LLC. Contact our Lynnwood, WA, office today to schedule your appointment.
