DIY During COVID-19: Does Your Home Insurance Cover Upgrades To Your House?
Due to the recent events surrounding COVID-19, people are spending more time at home than usual. Naturally, people are turning to hobbies and DIY projects to help pass the time and improve their living space. While building and renovating can improve the value of your home, it’s important to understand how these upgrades can impact your homeowner’s insurance.
Often people assume that by tackling projects by themselves, it doesn’t require the advisement of an insurance broker. If you’re just repainting a few rooms, this likely won’t affect insurance rates, but if you’re adding a sunroom, finishing the basement or remodeling the kitchen, the value of your home is likely to increase and your coverage needs to reflect that change. Here is a quick list of renovations that could impact your premiums.
Physical changes to your property or liability risks:
- Installing a bathroom
- Adding a pool
- Building a gazebo
- Buying a trampoline
- Building a swing set/treehouse
Although homeowner’s insurance can help cover the cost under liability coverage, always check with your trusted broker about any of these upgrades and improvements beforehand.
As the pandemic goes on, it’s easy to start tackling more and more projects you might have been putting off for months or years. As the projects add up it could possibly trigger a clause in your insurance policy called coinsurance, meaning your home is significantly underinsured and you may have to pay a percentage out-of-pocket in the event of a claim. Always check with your broker if you’re thinking of doing bigger or more expansive projects during this time.
It’s important to note that not all renovations increase insurance premiums, but still can end up saving money. Making your home safer and more disaster-resistant means possibly qualifying for a discounted rate. Some suggestions include installing a storm shutter, modernizing plumbing and heating, adding smoke detectors, fire alarms and home security systems. There are plenty of projects to keep you busy during quarantine!
Home insurance policies are designed to help protect your home in event of unexpected problems when they arise. If you are thinking about upgrading your home, have questions about how your coverage works, or have not reviewed your policy recently, be sure to contact your broker to schedule a policy review. Your Merit broker is there to help, answer questions, and make sure you understand everything you need to know about your policy.
