TAMPA, FL - Have you updated your home recently? Did you add a new roof? A shed? A patio? A pool? Have you had any improvements to your home? Bathroom remodel? Kitchen remodel?
Many people forget to extend their insurance coverage on their home after it’s been remodeled or updated. I mean once our homeowners policy is paid for (for those who choose to pay in full), it’s out of sight out of mind. We’re not really worrying about it until it’s time for our renewal, am I right?
When it comes to updating your homeowners coverage, there’s a few things to keep in mind.
First: take a proper inventory of everything in your home. Account for all personal property inside and outside of your home. (You can even take pictures to account for everything.)
Next: calculate the cost to rebuild your home if a disaster were to occur.
Last: determine if you need extra coverage for any updates or improvements to your home.
“So wait, how do I calculate the cost to rebuild my home if a disaster happens?”
Insurance agents can determine the value of your home from an RCE (replacement cost estimator. A “replacement cost is the typical calculation used for your dwelling, meaning your home and other structures on your property. Replacement Cost is one of the two most common calculation methods used by insurers to determine the amount of money they will pay on a claim. The other one is the actual cash value (ACV).”
But don’t worry! RCEs are also used to recalculate the cost of your home after it’s been updated or remodeled.
If you’ve added on to your home, you’ll need to increase your insurance coverage. Let’s say you insure your home for $300,000 and you’ve added a sunroom that increases the value of your home by $30,000. Your insurance agent would advise that you also increase your coverage up to $330,000.
If you’re remodeling a section of your home, let’s say your kitchen for example, and you decide to install quartz countertops and new flooring. Wouldn’t you want these items replaced in the event of a disaster? It’s best to notify your agent as soon as all projects are complete.
Floridians know that most insurance companies won’t insure a home with a shingled roof that is 15 years or older. Not only will replacing the roof increase the value of your home, but did you know you now might be eligible for a discount? Insurance companies find the best discounts for roofs that are only a few years old, and more discounts can be granted to homeowners with a roof that is made to withstand hail, leaks and windstorms.
Thinking of building a pool to add on to your home? Having a pool, especially in Florida, adds so much value to your home. However, it makes room for a liability hazard as well. In most cases, pool accidents are covered, but your insurer may require a fence with a gate around the exterior of the pool as a condition for coverage.
IMPORTANT TIP: How do you know if the contractor you’ve hired is legit? FIND OUT.
Research the contractor you’re hiring to guarantee that they are licensed, bonded and insured and that they have positive reviews on Google, Angie’s List, or any other directory site you may know of. You can even ask your contractor for a copy of their insurance for your records. It’s best to be EXTRA prepared incase something happens while your home is under construction.