Kitchen Renovations And Your Homeowners’ Policy

A homeowners’ insurance policy is designed for disasters that could damage or destroy your home. You will be covered for any financial loss the damages and repairs cost you. However, a homeowners’ policy will not automatically cover renovations to your home when you decide you want to remodel. So, if you want to renovate a room like your kitchen, you would have to adjust your policy to include the new changes. Consider this your handy guide to how to go about updating your homeowners’ policy when renovating your kitchen.

Notify Your Homeowners’ Insurance Provider

Before beginning a kitchen renovation, you should contact your home insurance provider. Your policy should cover such initiatives as well as contractor liability while they are on site. If your kitchen is upgraded, it will cost more to insure. If you have a disaster and your kitchen suffers damages (for example, if the floor is destroyed), you may be short on insurance after the renovation is finished. When the contractors begin, you’ll want to verify that your workers’ liability coverage is adequate. Let’s assume that your current insurance coverage limit is $250,000 for damage to your property, but your kitchen’s aged cabinets, countertops, and other elements are replaced with the newest appliances and cookware. This increases your house insurance coverage by at least $50,000. So, you should set your policy limit to $300,000. After the remodeling is finished, inquire about the cost of replacing your kitchen and adjust your insurance accordingly.

How to Adjust Your Homeowners’ Policy

When you’re doing something as major as renovating your kitchen, your homeowners’ insurance provider may recommend that you do the following:

    • Increase insurance for renovation work – This is done so that when you send your provider a copy of your invoices, the kitchen remodeling will be taken into account.
    • Increase liability insurance for workers – This is insurance for you in the event a contractor is injured while working on your home. This coverage is based on how many workers are on the job and how long it will take.
    • Increase liability insurance for completed kitchen – Your renovated kitchen is bound to have new features like the latest stove or oven. Liability insurance is needed if anyone is injured using them and other new appliances in your kitchen.
    • Increase personal property insurance – Again, new features mean new insurance may be required. You may have to increase your personal property coverage to include it and more.
    • Investigate renovation insurance – Dwelling under renovation insurance covers the construction supplies being used to remodel your home including the wood paneling. It may be worth it if it is a large-scale project.
  • Investigate vacant home insurance – You may need this insurance if you have to live out of your home until the job is done. This insures your home as an empty property.

Insurance For The Workers

A business and liability insurance policy for employees, as well as compensation, is necessary for the contractors or construction businesses doing your kitchen remodeling from getting the right dining room to installing appliances. When a homeowner has their own insurance, contractors are less likely to sue you for damages and injuries. Before hiring any contractors, make sure they have insurance.

The Kitchen Remodel Will Affect Your Homeowners’ Insurance Premiums

Remodeling your kitchen is likely to result in higher insurance premiums. The new appliances and finishing supplies that are added drastically raise the cost of restoration. When considering the overall cost of a project, materials such as granite countertops or commercial-grade appliances may result in higher rebuilding expenditures than simple components. On the other hand, installing a fire suppression system in your kitchen may lower your premiums. Because your kitchen will be more resistant to a fire, you’ll save money on your insurance policy. Safety products like smoke alarms and carbon monoxide detectors can also help you save on homeowners’ rates.

Luke Hernandez

With a Bachelor’s in Architecture from UCLA, Luke Hernandez has been transforming spaces and providing home improvement advice for over 17 years. He also ran his remodeling firm and contributed to various home improvement magazines. He became a part of various websites in 2016, offering practical, hands-on advice for DIY enthusiasts and homeowners. He is passionate about sustainable building practices and is a weekend rock climber. His previous experience includes managing large-scale construction projects. He also enjoys woodworking and volunteering in community rebuilding projects.

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