You finally did it.
New cabinets. Quartz countertops. New appliances. Maybe you knocked down a wall, added an island and turned the kitchen you tolerated for 15 years into the kitchen you’ve always wanted.
The project cost $40,000.
You updated the kitchen.
But did you update the insurance protecting it?
At Lew Griffin Insurance Group, this is something homeowners can easily overlook. We tend to think about calling our insurance agent when we buy a house, buy a car or have a claim. Renovating the house doesn’t always trigger that same thought.
But sometimes it should.
Your Home Isn't the Same Home You Originally Insured
Your homeowners insurance is designed in part around what it would cost to repair or rebuild your home after a covered loss.
Now think about everything you may have changed since you bought it.
Maybe you:
- Remodeled the kitchen or bathrooms
- Finished the basement
- Added a bedroom or home office
- Built a deck or patio
- Added a garage, shed or pole barn
- Installed a pool or hot tub
- Finished space above the garage
- Added custom flooring, cabinets or built-ins
- Completed a major addition
Individually, some projects may not seem significant from an insurance standpoint. Over five, ten or fifteen years, however, they can dramatically change the home your policy is supposed to protect.
The $40,000 Kitchen Problem
Suppose your home was insured based on its features and replacement cost before your renovation.
Then you put $40,000 into the kitchen.
A year later, there's a major fire.
Your insurance company isn't rebuilding the kitchen you had when you originally purchased your policy. You're expecting it to restore the kitchen you have today.
That's why replacement-cost estimates should periodically be reviewed as your home changes.
And there's an important distinction here: your home's market value and its replacement cost aren't the same thing.
What Zillow says your house may sell for isn't necessarily what it would cost to rebuild it.
Central Ohio Homes Have Changed—a Lot
Drive through Gahanna, New Albany, Blacklick, Reynoldsburg, Pickerington or many of Central Ohio's established neighborhoods and you'll see it everywhere.
Homes that were built decades ago have been transformed.
Basements have become entertainment spaces. Basic kitchens have become high-end kitchens. Patios have become elaborate outdoor living areas. Garages and outbuildings have been added.
At the same time, construction materials and labor costs have changed substantially.
So here's a question worth asking:
When was the last time the insurance protecting your home was reviewed to make sure it still reflects the home you're living in today?
If the answer is "when we bought the house," it may be time for a conversation.
Some Renovations Change More Than the Value of Your Home
Not every home improvement issue is about rebuilding cost.
Some renovations can also change your liability exposure.
A swimming pool is a perfect example. So is a hot tub.
A new deck or outdoor entertaining area could mean more people spending time on your property. Converting part of your home for business use can create insurance questions depending on how the space is being used.
Building a detached garage, large shed or pole barn can raise questions about whether the structure is adequately covered.
The point isn't that every improvement automatically requires more insurance.
It's that your agent needs to know the improvement exists before they can help determine whether anything needs to change.
What About a Finished Basement?
This is a big one in Central Ohio.
Maybe your basement used to be concrete floors, exposed walls and storage.
Now it has flooring, drywall, a bar, furniture, televisions, a bathroom and thousands of dollars in electronics.
That's a very different space to repair after a covered loss.
And because it's a basement, there's another important conversation to have: water and sewer backup coverage.
Many homeowners assume every type of water damage is automatically covered by homeowners insurance. That's not necessarily the case.
Understanding those distinctions before there's water in your newly finished basement is much better than discovering them afterward.
Don't Forget What's Inside the Renovation
Renovations sometimes come with expensive personal property, too.
Maybe the new home office includes several thousand dollars in computers and equipment. Maybe you've added expensive electronics to the basement. Perhaps the renovation included new furniture, artwork or other valuable items.
It's another reason a home insurance review shouldn't simply be about the structure.
Your home changes.
Your belongings change.
Your lifestyle changes.
Your insurance should keep up.
Before Your Next Project, Call Your Agent
You don't need to call us because you're changing a faucet or painting the living room.
But when you're investing serious money into your home, adding square footage, constructing another building or introducing something that could change your liability exposure, it's worth having the conversation.
Tell your agent what you're doing.
Ask whether your replacement-cost estimate should be updated.
Ask whether there are any new coverage considerations.
And if it's been several years since anyone reviewed the entire policy, this may be the perfect opportunity to do it.
Your Insurance Should Protect the Home You Have Today
The house you bought ten years ago may not be the house you're living in today.
And that's a good thing. You've invested in it. You've improved it. You've made it yours.
Just make sure the insurance protecting it has kept pace.
At Lew Griffin Insurance Group, we believe insurance shouldn't be something you purchase once and forget about. A good agent should help make sure your coverage continues to make sense as your life—and your home—changes.
Planning a renovation or haven't reviewed your homeowners coverage in a while? Give us a call. We'll take a look.
Because when you've invested that much into your home, you want to know it's properly protected.
Your insurance is only as good as your agent.