Buying home insurance protection for your home is not a one-time, static process. As your life situation changes and you add or subtract possessions from your home, it is in your best interest to review your current home insurance coverage. The same goes for if you renovate the home or add smart home technology to it. Comprehensive reviews of your coverage in these instances can help you find out if you have the right amount of protection in place for your home.
There are certain life events that should prompt you to consider a review of your home insurance. Some of those include:
- Completion of a home renovation
- Renting of space in your home
- Starting a business in your home
Let's take a closer look.
Renovating Your Home
As a homeowner, you may have considered some type of home improvement or renovation project. Homeowners engage in these projects for a variety of reasons: to improve the aesthetics of their home, to fix a recurring issue, or to increase the value of their home for resale.
It is important to consider what impact a renovation may have not only on your home's value but also your home insurance coverage. For example, replacing an aging roof may be a renovation project that can save you upwards of 20 percent on your home insurance premiums (depending on your insurance company). That type of savings could not only be significant, but it could also defray the cost of this replacement, which is essential for protecting your home.
Turning Your Home Into An Income Property
If you decide to rent a portion of your single-family home to a tenant for the additional income, you need to immediately check your home insurance policy to see if you are covered. Many standard home insurance coverages do not protect you from loss incurred by a person who is renting part of your home. Whether you're providing a short-term (less than six months) or long-term (six months or more) rental, you may need to add an endorsement or rider to protect yourself from loss.
Starting A Home Business
More and more homeowners are starting home-based businesses. Working out of your home may require the addition of business equipment, supplies, and other materials specific to your business needs. These additions to your home, and any liabilities that may be associated with the operation of your business, may not necessarily be covered under your home insurance policy. A rider may be required to your home insurance, or you may have to purchase separate business property or liability coverage to protect your business.
These types of events should trigger an immediate review of your home insurance coverage. A conversation with your Select Insurance agent can help you determine if you have the appropriate level of policy protection in place. Your agent can also take the appropriate action to update your home insurance policy, if needed.
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