Renovating Your Home? Don't Forget This Step

Despite what the home design television shows might have you believe, there’s more to updating your house than pickin out tile and finding the perfect reclaimed wood for your new feature wall. What you’re not used to seeing behind the scenes is all the planning and paperwork and that goes into these projects, including contracts, permits, and one thing you might never have considered: insurance.     


When you make major changes to your house, whether structural or cosmetic, you’re also changing its value, and that means your old insurance policy limits might not cover your upgrades. And if your policy doesn’t cover your upgrades, you’re putting yourself at a major financial risk if, say, your new basement catches fire during construction or your new roof takes a major hit in a storm.

Long story short, increasing the value of your house means you’ll want to update your insurance policies to protect the new value in the event of damage or disaster. And don’t forget to make sure anyone you hire to work on your home has the commercial insurance coverage required by law, even if they were highly recommended by friends and family. It’s also a good idea to consider increasing your liability coverage in case you were to become legally liable for an injury.

Now, if you’re worried your premiums will automatically go up once you make improvements, you’ll feel better knowing some renovations might actually qualify you for discounts. The details will depend on what exactly you’re doing, so be sure to talk with an expert, such as a local Allstate agent, to make sure your bedroom addition/gourmet kitchen/swimming pool will be adequately covered by your policy.  


If you need information about home insurance for your current abode or potential future renovation project, Allstate can help.


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