Have you made or have plans to make home improvements? If so, you should ensure that you notify your home insurance provider. Perhaps you are thinking that reporting the improvements might result in higher premiums. You might also be erroneously thinking that a small project is not worth notification. There are a number of reasons why homeowners should report upgrades to their insurance providers. It might seem like a hassle to report and fill out paperwork. However, think about what could happen if you need to file a claim. The following points identify key reasons to ensure that your homeowners' insurance policy includes modifications to your home.
Determine What To Report
Perhaps you are thinking that reporting every detail to your insurance company is ridiculous. You can choose not to report simple projects such as replacing carpeting in one room or getting a room painted. However, if these projects are done as part of a larger project, such as a room addition, they will likely be a part of a project that costs thousands of dollars to complete and should be included. You should also report major projects, such as a roof replacement or transforming an unfinished basement into living quarters or a recreational area. When in doubt, it is best to contact the insurance company for guidance.
Think of Underinsured Consequences
If you think that it is best not to report upgrades to your home, you should consider what would happen if you incurred damages. The insurance company cannot reimburse you for reported damage to appliances that they do not know that you purchased. It is also impossible for them to make a payout to you for home improvements that get damaged by fire, weather events, or another unfortunate cause. You must report expensive upgrades and home improvements lest you file a claim and get a payout based on the most recent upgrade information the home insurance provider has on file.
Ways To Handle Premium Increases
If your home improvement project results in a higher premium, you can inquire about possible savings. Perhaps you are overlooking other insurance products offered. Some insurance companies offer discounts to policyholders who get more than one insurance product from them. You can also do rate comparisons and see if you could save by choosing another provider. Some insurance companies extend rate matches or offer a lower rate to beat their competition. Your current company might offer to match a lower quote to retain your business. A new homeowners' insurance company might extend a lower rate to remain competitive and get new customers.