Don't Lose your renovations!

Author: Brian D. Williams, Karns Insurance


One of the best parts of being a homeowner is making your home truly yours. Sometimes it means little changes over time and sometimes it means big projects. We watch our favorite home improvement shows and we daydream about all the possibilities of what our home can look like and what it could mean to our eventual resell value.

After the daydream, comes the hard work and/or stress of turning our imagination into reality. Perseverance and determination push us through the whole event until finally the renovation project is all done. Now, we can sit back and enjoy the fruits of all the hard work, right? Well..... let's do one more thing before we call the project completely done. The last step should be to call your insurance agent and tell them about what you have accomplished.

This is a simple yet critical final step and here is why.

If something bad does happen and the renovated part of the home becomes part of an insurance claim, you will want the policy to replace the renovations. Let me give you an example, Let's say you have a very normal home that any person may own and you decide to spruce it up a bit since your aging parents will be moving in with you. You spend $20,000 to turn your unfinished basement into a lovely living space and spend another $15,000 to enlarge and upgrade your kitchen. It takes a bit of time, but the project turns out perfectly. The basement is fantastic and the kitchen is not only twice the size but ready for a magazine cover. Six months later tragedy strikes and the house burns down.



If you DID NOT call your agent then your policy will only replace the small kitchen and the unfinished basement. Also, no coverage at all for your parent's belongings. However, if you did call your agent and explain the upgrades and about your parents, these problems never happened. Your new kitchen and finished basement are replaced as well as all your parent's belongings. Your home insurance needs to be updated when you make improvements to the home and/or add new adults to the home. Here is some more good news, adding $35,000 worth of improvements to the home doesn't change your cost much. This is probably a $20 to $30 a year price difference.

Call Brian to talk more about insurance options for your home: 865-384-8805