Home Improvement Projects Your Agent Should Know AboutIf you are a homeowner, then you may have done some recent updates, total renovations, or perhaps an add-on.  Since the Pandemic, many homeowners retreated into their homes only to realize much needed home improvement projects. So, what does that mean to your homeowners insurance protection? While some home improvement projects don’t need to be reported to your local independent insurance agent, others do.  Read on to find out which home projects your insurance agent should know about.

When you purchased your home, you insured the home for the current value (along with other factors) and from there your insurance premium was declared. Keep in mind though, that improvements made to your home can increase the value of your home.  Simple things like paint and flooring changes probably won’t impact the worth of your home or the current coverage limitations, but what about more significant renovations, updates, or add-ons? A rule of thumb is that any updates or improvements that would affect the cost to rebuild your home by $5000 or more should be reported to your local N.Y. independent insurance agent.

Home Improvement Project Considerations

Imagine that in the last four years, you decided to add on to the back of your house with an expanded main bedroom and bathroom.  Naturally, this added square footage to your home and increased the value of your home.  The total cost of this overhaul was over $100,000.  Now, imagine you experience a fire to your home that damages your add-on.

Your current homeowners insurance coverage was estimated to cover you for the property initially inspected at the time of purchase. When your agent wrote your New York homeowners insurance policy, he/she reviewed all the properties of your home to determine the amount of coverage you would need to properly protect your home.  Those things include, but aren’t limited to:

  • Age/Condition of your home
  • Total Square footage
  • Basement (finished/unfinished)
  • Number of bedrooms and bathrooms
  • Age/Condition of your roof

Your agent’s goal is to assess an estimation of the cost to rebuild your “exact” home should a covered peril occur and destroy your home and thus, write that amount of coverage to reflect that.  Failing to communicate this additional square footage could mean your home is underinsured, meaning if your home was destroyed, there may not be adequate coverage to rebuild your house to its exact state.

In the above scenario, you not only increased your square footage, but also increased the value of your home by doing so. This type of overhaul should be verbalized to your insurance agent. Your agent can assist you with all your home improvements and make the necessary amendments to ensure your coverage limits are sufficient to protect all your homeowners insurance needs.

Cameron Group Insurance is Here for all Your N.Y. Homeowners Insurance Needs

When in doubt, call us. We are here to assist you with any questions or concerns regarding the coverage limitations you currently have on your property or whether we need to make any necessary adjustments to ensure you are completely and adequately insured. Don’t wait!  Call us today at 845-627-2130.