Home improvement projects are covered under your homeowner policy. These repairs are covered if you performed the repairs yourself or if your hired someone else to do them. If the damage was sudden or caused by accident, then the policy also covers the remodeling project. One thing to remember is that repairs that add square footage typically require that you increase the coverage on your homeowner policy.
Installing a new roof?
Covered! You can save anywhere between 10 and 20 percent for upgrading the roof of your property. Many insurers view the roof as one of the most significant aspects of the home’s overall structural integrity.
Adding flood sensors is covered by homeowner insurance. Upgrades to flood detectors are actually free when professionally installed. Homeowners are surprised to learn that their policies don’t cover floods to the property. Flood damage must be covered by an actual flood insurance policy.
Adding an office?
Adding an office is not covered in a policy. Policies should be amended to cover the home office addition. If the business requires heavy traffic to include visits from customers, then your policy’s premium will increase slightly more than if your business was simply operated as an office with no visitors. Office equipment is covered under the homeowner policy. The average policy only covers up to $2,500 in office equipment.
Plumbing and electrical improvements are covered. This is especially the case when the plumbing and the electrical wiring is updated. This is because electrical fires are common causes of fires in the US. According to the US Fire Administration, 28,600 fires happen each year due to faulty wiring or outdated wiring. Once the improvements are completed, insurance premiums are reduced by 10 percent or more on average.
Installing a home monitoring system is not covered, but it will lower your insurance premium by 20 percent. This addition reduces claim risks for the property. These systems reduce chances of fire and water intrusion by alerting homeowners to risks. Detecting these threats reduces claim risks.
Preparing for a home improvement project
Before you begin any home improvement project, you should contact your insurer to verify whether the project is covered, and what precautions you need to take to avoid accidentally voiding your policy. Doing this will also let you know whether or not your policy should be expanded to cover the addition to the property.
A rule of thumb for insurance coverage on home improvement projects is that it will only be covered the damage happened suddenly. Changes that reduce claim risks are viewed favorably by insurers, but damage that has occured over time and requires fixing is less likely to be covered. Stay on top of this by updating your policy with each renewal.