home insurance after remodel

Why you need to update your home insurance after a remodel

Bathroom renovations can be costly. But failing to tell your insurance provider about those renovations could be even more costly.

A lot of people forget, or don’t know they need to. But, that’s not an excuse in your insurance company’s eyes. Nor does it soften the financial blow when “something happens” during or after your renovations.

Add this to your to-do list ASAP. Here is a look at the how and the why of telling your insurance company about your bathroom renovation.

Why Do I Need to Tell My Insurance Company

You’re not just adding beauty to a room; you’re adding value to your home. And everything about your insurance revolves around that number. It dictates how much you pay in premiums and how much you’re covered for.

This means your provider needs to know the current and accurate value at all times, especially after renovations or major changes.

Will this potentially increase your payments? It certainly could. But that increase is small compared to the cost of not being covered because you altered your home without telling your insurance company.

However, the renovation could also save you money, as you could be eligible for homeowners insurance discounts for adding new:

  • Electrical systems
  • Plumbing
  • Roofing
  • Security features
  • Fire alarms

Your provider often rewards changes that add security or energy efficiency.

What Constitutes a ‘Major Change?’

Nearly any type of renovation is a major change and your bathroom is no exception— Particularly if you’re doing things like changing the plumbing or electrical system in the room, or adding/ removing a wall.

You should also contact your provider if you add big-ticket items like a new roof, pool, trampoline, TV/ entertainment center, or even expensive furs and jewelry.

When Should I Tell My Insurance Provider?

The sooner, the better!

If you’re reading this during the planning stages, call your provider ASAP. You want to make sure they’re aware of the renovation, so you can protect any of the workers or materials used in the renovation.

If something happens during the actual renovation, you need to make sure you’re covered. Yes, you need to do this even if you’re doing the renovations yourself, or with the help of family and friends.

If you didn’t notify them before the project started, be thankful nothing bad happened and call them as soon as possible.

How Do I Tell Them?

The easiest way is to simply call your provider. You should also take some “before” pictures of your bathroom, so you have them.

If you’re doing this before you start the renovation, be sure to mention any furniture and other items you need to put in storage or take out of the home during the project. This ensures they’re still covered even though they’re not on-site during renovations.

Make sure your renovation company is insured and ask them to see their certificate! Working with an uninsured contractor is a dangerous game you don’t want to play. Be wary of anyone with no insurance who wants to work “under the table.” If they get hurt or break something, you’re not covered.