Before you dive into your next home renovation or
improvement project, there is one very important thing you should consider—your
Florida home insurance. Home renovations add value to your home so if you do
not report this to your insurance company, your renovations, additions or other
improvements will not be covered in the case of a loss.
Will the Renovation
Raise or Lower the Premiums?
One of the things that many homeowners need to consider is
the fact that their Florida home insurance premiums are likely to change once
the renovation is reported to the insurance company. However, this does not
mean that premiums will always go up; in some cases, they may actually go down.
Your premiums will likely increase if you are adding square footage to your
home, remodeling a kitchen with new appliances, and upgrading flooring or
roofing. Some things that may lower your premiums include the addition of
security systems, heating and cooling upgrades, or even the addition of a
security fence.
Insurance for the
Workers
Not only should homeowners ensure that their insurance
policies will cover additions to their homes, but they should also make sure
that the policy will cover any injuries that contractors and subcontractors
could suffer on your property while the work is being completed. Although the
homeowner is not always responsible for these injuries, this could be the case
in the event that the contractor or subcontractor does not have the proper
worker’s compensation coverage. Rarely will the homeowner need to worry about
covering the injuries sustained, but it is always better to be safe than sorry.
When to Report
Renovations
The best time for you to report renovations to your
insurance company is before they are started. This way, you can get some idea
of the amount of increase or decrease you can expect with your premiums. In
some cases, the insurance company may stay in contact with you throughout the process
and send an adjuster to review the changes once the renovations are complete.
The purpose of this is not only to make sure that the noted renovations took
place, but also to re-appraise the value of the home and determine what sort of
changes should be made to the insurance policy or premiums.
Other Things to
Consider
There are some changes you can make to your home that will
have a rather large impact on your Florida home insurance rates and policy. For
instance, if you put a pool in your backyard, your insurance rates will almost
undoubtedly rise because this presents more risk for both your family and
others. Many insurance companies will also require the homeowner to build a
privacy fence around the pool to keep others from entering from the outside.
Some other huge changes that will impact your insurance policy include adding a
room, purchasing new furniture and adding artwork or other décor that is
considered costly.
All in all, the more value that a renovation will add to
your home, the more you can expect your rates to climb. However, for things
that will actually protect your home, your rates may go down. Be sure to report
any proposed renovations to your Florida home insurance company immediately so
that you will not be surprised with these changes down the line.
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