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2021-12-15
By: Advocate Brokerage
The end of the year is a common time for families to begin to make plans for the year ahead. If your daydreams of a home renovation begin to take form as a plan for the near future, we encourage you to include us!
Renovations and other types of construction projects bring more claims exposure to your home and property. If your insurance carrier is unaware that you are renovating, your coverage might be jeopardized due to policy conditions that are included by all insurance companies. Not only that, but home renovations are also a great time to talk about adding important safety measures to your home. If the walls of your home are already open, it is a great time to make upgrades to a whole house fire and burglar alarm, a smart home security system and/or a water flow device if you don’t already have them installed.
You should keep in mind that your insurance coverage is subject to the very stringent wording in your policy contract. Generally, your policy might include a special construction deductible of 5% of your dwelling limit, and the coverage is capped without guaranteed dwelling replacement coverage. So, for a $1,500,000 dwelling the deductible would be a $75,000 deductible instead of the $10,000 deductible chosen when you purchased your policy (for example). That means, if we don’t know about your renovations, you could end up paying substantially more out of pocket at the time of a claim.
However, if you keep us in the loop and tell us ahead the project being completed, the chosen deductible applies and coverage is adjusted to reflect the amount of money you are spending on the improvements so that you don’t fall short in coverage. Depending on the size and duration of the project, the company might inspect to help you determine the proper dwelling replacement limit.
So, if your 2022 plans include a renovation project, please get in touch with us at 914-723-7100. Not only will be help you understand the risks and make sure your coverage is sufficient, but we might also be able to offer safety suggestions that can could offer future cost savings!
