Like many homeowners, you’re probably eager to make some changes to make your home more attractive or to increase the value of your property, but do you know how those changes could affect your current homeowner’s insurance policy? If you’ve been thinking about adding some square footage to your Green Valley, AZ home or upgrading it with new features, you’ll need to consider how those upgrades and renovations could affect your homeowner’s insurance policy.
How Big Is Too Big?
Most homeowner’s insurance policies do not cover remodeling projects that exceed a certain dollar amount. If your renovation plans include major additions such as adding another room or changing the building’s structure dramatically, you will need what is called builder’s risk insurance. Construction of any type generally carries risks – an electrical mishap could cause a fire, or materials or property may become accidentally damaged. Builder’s risk policies protect your property from damage during the construction process that aren’t covered by your homeowner’s insurance policy. Talk to your Insurance Center of Green Valley agent to determine what additional forms of insurance may be required.
Are You Adding Value?
If your renovation project will be adding significant value to your property, check your limits. It is possible your new patio or upstairs master bedroom suite addition could add tens of thousands of dollars in value to your Green Valley, AZ property. Your homeowner’s insurance policy comes with a property value limit. Before you start construction, make sure any new additions will be covered by your current policy. If the value has increased considerably and your limits are exceeded you may need to raise your limits.
For more information about how your new dream kitchen or living room addition could affect your current homeowner’s insurance policy, contact the Insurance Center of Green Valley today. We’ll make sure you’re covered before your project begins.