Whether it’s a DIY job or a complete makeover for your home, it’s important to remember that oftentimes renovations will affect your home insurance cover.
If you are remodelling your home you may need to increase the amount of cover that you have. It’s not all bad news though, some renovations can help you qualify for a discount; so keep reading!
Here are 5 common situations that potentially will affect your house insurance.
1. Building an Extension
If you add an extension to your home such as an extra bedroom, a new garage or a larger living room then the value of your home will be increased. If the value of your home increases, then the cost to repair or rebuild your home similarly rises and this affects the insurance that you pay.
By adding an extension, you will need to increase your coverage to reflect the new value of your home. The level of increase varies greatly from insurer to insurer and home to home. I recommend contacting an insurance agent in advance of getting any work done to see how it may affect your insurance payments. The AA Home Insurance Company is extremely helpful in this regard and you can get a quick quote online at very affordable price.
2. Building a Pool
Adding a pool to your home is a lifelong dream for many people. Thankfully it no longer involves the huge cost that was formerly required. Installation of an above ground pool can cost as little as €2,000 and provide the family with a lifetime of entertainment. However, remember to contact your insurance broker as there is an increased risk in owning a pool.
Slippery floors and other damp surfaces increase the threat of someone being injured. If someone visiting gets hurt, you could be responsible for their medical bills; regardless of who is at fault.
You should contact an insurance broker to see what cover is required. It’s possible (and highly recommended) that you increase your coverage to include the potential for any pool-side accidents.
It’s also advisable that you maintain proper upkeep of your swimming pool. Your insurance broker will be helpful here to provide guidance on minimizing risk by the pool. For example, adding a handrail and motion sensor lights will go a long way to reducing risk and in turn reducing your insurance premium.
3. Adding a Deck
A new deck might be the perfect idea coming into summer – long summer evenings, a BBQ and the whole family together sounds nice right? Just be warned, a new deck will add risk as well as reward. If someone suffers an injury on the deck, you want to be certain that you’re covered. Contact your insurance company if you’ve got a new deck or if you’re testing out the idea.
4. Renovating the Kitchen
If you’re sprucing up your kitchen with marble countertops, new tiled flooring and the latest futuristic appliances then you can significantly increase the value of your home. But as already mentioned, these improvements can add to your insurance bill.
If you want to reduce your house insurance premium, you could upgrade the electrical wiring in your kitchen and ask an insurance broker if you qualify for a discount. By improving the electrical wiring in your home, it reduces the risk of fire and electrical damage and therefore some insurance companies will afford you a discount.
5. Redoing the Roof
Another possible method of qualifying for a house insurance discount is by strengthening or reinforcing your roof. Storms and extreme weather conditions have become commonplace and there is value in reinforcing the resistance of your roof against these conditions. You should speak with an insurance broker before undertaking any work because redoing your roof could increase the value of your home and hence you might need more coverage.
The moral of the story is that home improvements will change your insurance requirements. But don’t fret; you could qualify for a discount with certain types of improvements. Don’t forget to can speak with an insurance broker to be advised about what coverage you require or what discount you could avail of.
