If you have recently added an ADU – make sure you do not forget to include it in your insurance coverage – it might go under “other structures”. Actually, updating insurance is one of the most often forgotten things at the end of the project.
Learn more about the technicalities of wild fire insurance policies here.
Homeowners Need to Update Insurance After a Remodel, too!
Many homeowners have spruced up their homes during the pandemic. But major remodeling upgrades could result in homeowners needing to update their insurance, too. Otherwise, the home may be under-insured if a disaster ever strikes.
“Remodeling your home can lead to higher insurance rates, since a home remodel often increases the rebuild cost of a home,” a new report from QuoteWizard.com states. “Your dwelling coverage limit should match the rebuild cost of your home.”
The quality of the updates could also have an impact on premiums. For example, an updated roof that uses low fire resistance or window update with weak window panes could also result in an increase in home insurance premiums, the report notes.
Homeowners may want to talk to insurers before they start a major remodeling job so they can brace themselves for any added premium costs.
Property damage comprises more than 98% of all homeowner insurance claims. Of property claims, wind, hail, fire, and lightning are the most common reported damages, the report finds.
December 4, 2020, Realtor Magazine