You're ready to add on that room, remodel that kitchen and renovate that bathroom. But wait just a second! One step that most homeowners forget is to notify their homeowners insurance agent or company about their renovations.Compare home insurance quotes from leading companies and save.
According to a national survey conducted by Trusted Choice®, a group of insurance agencies and financial firms, nearly 40 percent of homeowners who said they had significantly remodeled their homes, such as adding a deck, room, or porch, said they had not updated their homeowners insurance policies to reflect these changes.
If you fail to update your homeowners insurance policy and the worse case scenario becomes a reality, your policy might not provide insurance coverage for such improvements. However, if you notify your insurance company before the remodel even begins, you may also be covered for any building materials you have in your house during the renovation.
The reason you should notify your insurance company is that remodeling quickly adds to a home's value, but many homeowners fail to increase their insurance coverage to match, which means it is not until a disaster strikes that many homeowners realize that they haven't reevaluated their coverage to include any work done on the house.
Many homeowners only insure their homes based on their lender's requirements, purchasing only enough insurance to cover their mortgage balance. This leads experts to estimate that nearly two-thirds of all U.S. homes are underinsured, many significantly so.
If you have installed home safety upgrades to your home since you purchased your homeowners insurance policy, make sure you notify your homeowners insurance company, as you may qualify for discounts. The same advice goes for if you have upgraded your home's heating, plumbing or electrical systems.
Report any renovations to your insurance company or agent as soon as you begin, or at least right after completion. It's a good idea to take before and after pictures in case your insurance company requires them.
You should also shop around for homeowners insurance quotes at least once a year. Using InsWeb.com's online homeowners insurance quote form, you can compare multiple quotes within minutes. You could save money every month.