Renovating your house? How will home insurance help you?

IndiaNotes Team | March 15, 2017, 12:22 p.m.

Renovating is the best way to give a fresh and new feel to your house. A lot of things can be done to accomplish this. You could make a few structural changes here and there for a more revamped look and feel. In addition to this, you could overhaul the interiors by changing the wall paint, throw in some eye-catching wallpaper, add a couple of new curtains, change the flooring etc. The possibilities are endless.

While engaging in these activities, we evaluate and consolidate the budget for renovations prudently. Another thing that is crucial on similar lines is home insurance. We have a tendency to assume that renovation does not have an impact on the home insurance cover. However, that is a very wrong assumption.

To begin with, the premium that you pay towards the household insurance cover is directly linked to the value of your home. When you make changes to your home, both structurally and internally, the value of your house is bound to change. Thus, this change reflects in the home insurance policy premium. When you make changes to your home, more often than not, you also upgrade the house contents such as the TV, music system, washing machine etc. Also, the furniture may be upgraded too. With such improvements, the value of your house contents rises significantly. This makes it necessary to upgrade the home insurance coverage to compensate for the rise in cost.

With a proper home insurance cover in place, you safeguard you and your house against any unforeseeable incidents. With this, you prevent the risk of paying from your wallet for any damage that may cause to your house or its contents down the road. Also, with renovation and changes, there is a possibility of liability issues arising due to it. With increased coverage, you safeguard yourself against this risk.

There are several factors that affect the coverage of your homeowner’s insurance policy. In order to get to know about them, it is best to get in touch with your home insurance representative or agent.It is advisable that you inform the insurance provider in advance so that you are in a better position to make a right decision, both, in terms of changes to the house and the policy. If you are planning to increase the living space to accommodate your growing family, it will result in an increase in square feet area of the house. Also, if you are going for internal restructuring, say for your living room or the kitchen, it is possible that the value of your home will change too. These were a few of the factors or scenarios wherein the home insurance policy needs an upgrade for availing the best coverage.

Considering all the points discussed above, the importance of a proper home insurance cover cannot be understated. Thus, make sure you always have your home insurance upgraded as and when required.

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