Building insurance premiums and Renovations
Renovating your home comes with many benefits. It can increase the resale value of your home while improving your everyday living environment. We spend so much time in our homes, so why not make it as comfortable and aesthetically pleasing as possible?
But, before you launch a renovation project, consider the liability issues and the effect it can have on the value of your home. While increasing your home resale value can have many benefits, it could render your current home insurance coverage inadequate, leaving you vulnerable to losses. It could also trigger lower premiums – which would be a great plus!
Make sure you:
- Know which renovations increase or decrease your building insurance premiums.
- Inform your insurance company of the renovations taking place so that your home is completely covered.
What factors will decrease your building insurance premiums?
How insurance companies work is, the more risk your building poses, the higher your premiums will be. So, if you add safety features or upgrades to your home, it may bring down your building insurance premiums. Such features and upgrades include (and are not limited to):
- Shatterproof windows
- Security systems
- Smoke alarms
- Burglar bars
- Plumbing and electrical repairs
- Roof upgrades and repairs
What factors will increase your building insurance premiums?
Certain renovations may increase your premiums. If your home’s value increases or if the renovations cause more risk factors, you may have to pay more towards your building insurance premiums every month. Such renovations include:
- Upgrading a structure
- Adding on a room
- Installing a swimming pool
- Converting unlivable space to livable space
- Renovating current rooms
- Adding new fixtures and fittings
During renovations, consider reevaluating your home contents insurance if you add new contents, such as furniture and appliances, to your home. Find out the difference between home contents insurance and building insurance here.
Make sure you inform your insurance company about your plans so that your building insurance remains in full effect.