Are you considering remodeling or upgrading your home in Eureka, MO? The type of remodeling or upgrade you do can affect your home insurance policy premiums. Not all result in premium increases. Those considered safety upgrades will result in a decrease in premiums, while others will increase your monthly cost. Focus Insurance can help you understand how changes to your home will affect your home insurance policy.
Potential Premium Increases
Most improvements to your home will result in premium increases. That’s because when you remodel your house, it usually results in an improvement that increases its value. In turn, these improvements can increase property value. Improvements that add square footage to your home, such as an addition, fall into this category. Installing a new pool, a hot tub, or another outdoor enhancement will also increase your home’s value. Higher premiums are necessary because the replacement value of your home has increased.
Improvements That Decrease Premiums
Some common home improvements actually decrease value because they reduce the potential for damage under a covered risk. The most consequential improvement is getting a new roof. Fire-resistant materials mitigate your risks, but so does simply replacing the roof, as it reduces potential damage from storms. Insurance companies recognize such risks and issue premiums accordingly. Other improvements that reduce premiums include installation of home security systems, smoke and carbon monoxide detectors, and plumbing and electrical upgrades.
Notify Your Insurance Company
Notify your insurance agent whenever you make home improvements. Submit copies of the upgrades and their costs, so your insurance policy can accurately reflect the improvements and provide sufficient coverage.
If you are unsure what to do about your home insurance when you make improvements to your Eureka, MO, home, Focus Insurance can help. Contact our office for an appointment.
