When you make changes to your home, you may need to make changes to your homeowners insurance policy. Before you begin making any big changes, you should discuss the idea with your insurance agent. Below, you will find a short list of things that could require an update to your homeowners insurance policy.
Renting your Home Out
If you make the decision to rent your home out, you could lose your homeowners insurance policy. In most cases, you must be the primary resident of the home to maintain the protection of the policy. Say you rent the house out and it burns to the ground—the insurance company may deny the claim because you weren't the one living in the home at the time of the fire.
Before you move a tenant into the home, contact your insurance agent. You won't have to terminate your policy, but you'll need to transfer it to a policy that includes protection of rental properties. In fact, if you drop the coverage to structural protection only, the rates could actually drop. The contents of the home won't be covered, but the home itself will be. If you plan to leave the home furnished while you rent it, a rider will be added to the policy to cover the contents as well as the structure.
If you're planning a big construction project, contact your insurance agent. Yes, your contractor will have insurance that will provide certain protections, but you can add a builder's risk policy to your homeowners to protect you even further. This policy will protect you from accidents that could occur during the construction.
Another reason to contact your agent before a construction project is that the project is likely increasing the value of your home. When you make home improvements that increase the home's value, you need to up the coverage on the home so that you are reimbursed enough to rebuild your home to what it was before the loss.
If you upgrade some of the building materials used to finish your home, you could benefit with some discounts on your homeowners insurance policy. Things like fire-resistant shingles on the roof, wind-resistant siding and hurricane windows will all decrease the cost of your homeowners insurance premiums. Discuss the improvement options to find the materials that will not only lower your insurance rates, but will protect your home in the event of a disaster.
For further information about changes that require an update to your homeowners insurance policy, visit resources such as https://www.windfallinsurance.com. Insurance ages can help you make the changes and the decisions that come with home changes.