DIY projects around the home such as bathroom renovations will add value that needs to be reflected in insurance coverage. | Pexels
If you took the time during the COVID-19 pandemic while under stay-at-home orders to tackle some DIY projects, now is time to find out how they may affect your insurance rates.
Renovations and remodeling in the kitchen, bathroom or basement increases a home’s value. Coverage in the homeowner’s policy needs to rise to protect your investment, MoneyWise reports.
Just painting won’t do much to change a home’s value, so a change in coverage would not be necessary if that’s all that was done. But homeowners need to make sure they update their coverage limits in case of damages caused by fire or other issues. Failing to update a policy to match the home’s value will increase out of pocket expenses during the rebuilding.
Even some small changes can potentially reduce the homeowner’s insurance premium. By making the home disaster-resistant, up-to-date and safer, a homeowner may get a discounted rate, MoneyWise reports.
Some of those improvements the Insurance Information Institutes suggests include installing storm shutters, modernizing systems such as heating, electrical and plumbing, adding fire alarms and smoke detectors and installing a home security system, MoneyWise reports.
Ask your insurance agent for what discounts the home qualifies and then ask other providers for their prices and discounts.
But it’s not just what’s done on the inside of the home that affects a homeowner’s risks and liabilities.
With children home because of the stay-at-home orders, did you buy them a trampoline or build a tree house for them? Are you adding a pool? Even installing a swing set on your property increases your potential liability, MoneyWise reports. The risk of injury with a trampoline is so great that the American Institute of Pediatrics advises families against buying them.
An injury to another family’s child at your home that happens while in your pool, jumping on your trampoline or during play on your swing set could put you in debt for their medical bills. Homeowners insurance policies provide only limited liability coverage, MoneyWise reports. Homeowners should purchase additional liability coverage with an umbrella policy if you add play equipment in your backyard, the Insurance Information Institute suggests.
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