Oklahoma Insurance Professionals LLC Blog |
Author
Write something about yourself. No need to be fancy, just an overview.
Oklahoma Insurance Professionals LLC Blog |
Write something about yourself. No need to be fancy, just an overview.
When Mike and Lisa decided to renovate their Oklahoma City home, they envisioned a more functional kitchen and a cozy, well-insulated sunroom for those chilly winter evenings. They completed their projects, thrilled with their updated home. What they didn’t anticipate, however, was a surprising increase in their homeowners insurance premium after they notified their insurance company about the renovations. It left them wondering: How do home improvements impact insurance premiums? If you’re planning upgrades to your home, it’s important to understand how these changes can affect your insurance costs. Let’s explore how specific improvements may lower premiums, others might raise them, and why keeping your insurance provider in the loop is essential for protecting your investment. Why Home Improvements Impact Your InsuranceWhen you improve your home, you’re likely increasing its value. While this is great for resale potential, it often means your replacement costs go up too. Insurance premiums are tied to the cost of rebuilding or repairing your home after a loss, so any upgrades that enhance your home’s value or functionality could lead to an adjustment in your policy. Some improvements, however, can reduce risks, leading to potential discounts. Beyond this, insurers view certain renovations as opportunities to decrease or increase risks. For example, a modernized roof reduces the chance of storm damage, while an aging roof with no updates could pose a higher risk for claims. Knowing these details can help you make informed decisions about your home improvements. Improvements That Could Lower Your PremiumsCertain upgrades can actually save you money by reducing the risks associated with your home. Here are a few: 1. Installing a Security SystemAdding a monitored alarm system or smart home devices like cameras and motion detectors can deter burglars and lower the likelihood of theft claims. Many insurance providers offer discounts for homes with robust security measures. 2. Replacing an Old RoofIn Oklahoma City, where weather conditions like hail and high winds are common, upgrading to a durable, impact-resistant roof can lower premiums. A new roof reduces the risk of damage, which is a factor insurers consider when calculating rates. Roofs made from materials like metal or slate, which are resistant to extreme weather, can be particularly advantageous. 3. Updating Electrical and Plumbing SystemsHomes with outdated wiring or plumbing are at higher risk for fire or water damage. Modernizing these systems not only protects your home but may also lead to lower insurance costs as insurers view these updates as a reduction in potential claims. Energy-efficient systems, in particular, might qualify for additional savings. 4. Adding Storm Shutters or Reinforced WindowsIn areas like Oklahoma City that are prone to severe weather, installing storm-resistant shutters or reinforced windows can minimize the impact of storms, protecting your home from flying debris. This can lead to reductions in your premiums as insurers recognize these measures lower the likelihood of damage. Improvements That Might Increase Your PremiumsSome upgrades, while beneficial, can raise your premiums due to increased risks or higher replacement costs. 1. Adding a Pool or Hot TubA new swimming pool or hot tub adds fun and relaxation but also increases liability risks. Insurers may require additional liability coverage to protect against accidents or injuries. Fencing and safety features can help mitigate some of these increases. 2. Building an AdditionExpanding your home with a new bedroom or sunroom adds square footage, which increases replacement costs. This will likely result in higher premiums, though it also enhances your home’s overall value. It’s important to factor this into your budget when planning major additions. 3. Luxury UpgradesHigh-end features like marble countertops, custom cabinetry, or imported tiles elevate your home’s aesthetic but also drive up the cost of repairs or replacements, leading to higher premiums. While these upgrades may attract buyers if you sell, they’ll also catch the attention of your insurer. 4. Home-Based Business AdditionsIf you’ve added a dedicated space for a home-based business, such as a workshop or office, it may require a commercial rider or additional coverage. Insurers view these spaces differently because they carry distinct risks. The Importance of Updating Your PolicyFailing to notify your insurance company about renovations or improvements could leave you underinsured. If you add value to your home but don’t adjust your policy, you might not have enough coverage to rebuild after a disaster. Always communicate updates to your insurance provider to ensure your policy reflects the current state of your home. Additionally, unreported upgrades can lead to complications during the claims process. For example, if you installed high-end kitchen appliances without updating your coverage, you might only be reimbursed for standard appliances after a loss. Tips for Managing Insurance Costs After Renovations
Examples of Smart ImprovementsIf you’re wondering which projects to prioritize, consider these examples:
Serving Oklahoma City and BeyondFrom Edmond to Norman and everywhere in between, Oklahoma Insurance Professionals proudly serves homeowners throughout the Oklahoma City metro area. Whether you’re planning significant renovations or simply curious about how home improvements might impact your insurance, we’re here to help. Our experienced team will work with you to review your current policy, identify potential coverage gaps, and provide expert advice on the best way to protect your home while managing costs. Contact us today for a personalized consultation and learn how we can help safeguard your home and renovations.
Comments are closed.
|
Contact Us(405) 838-1818 Archives
February 2025
Categories
All
|
Navigation |
Connect With UsShare This Page |
Contact UsOklahoma Insurance Professionals LLC
1624 SW 122nd St Oklahoma City, OK 73170 (405) 838-1818 Click Here to Email Us |
Location |