Can I Increase my Coverage if I Add on to my House?

Your homeowners insurance policy is going to protect your home from a variety of different threats. When you sign up for a policy, you are going to have to give your provider some specific information about your home, so that you can get the right rates. If anything changes about your situation or your home, then you are going to have to inform your provider, in case you need to get some more coverage. One situation where this often occurs is when people add on to their homes.

When you add on to your home, you're likely going to raise the value of it. As such, you might really need to reevaluate your homeowners insurance needs and consider this the best policy change time. If you've poured more money into your home and increases its size, then the odds are that you will want more coverage to protect this new addition from any potential threats. Don't make the mistake of putting off this increase in coverage. You need to contact your agent today to find out what you need to do to make sure that your entire home is completely covered.

Increasing Your Coverage

It's a good idea to speak with your homeowners insurance agent before you even make any additions to your home. It's better that way because you can find out if you're going to have to increase your coverage and by how much. So before you make any concrete plans, spend a little time talking these issues over with your agent. He or she can give you some good advice regarding coverage, and you'll be able to make the right decision once you do decide to begin the addition process on your home.

How much you will need to increase your coverage is really going to depend on what you are doing to your home. Are you adding another story to it, or are you simply adding a bonus room? If you are investing quite a bit of money into your addition, then the odds are that you are going to have to add a whole lot of coverage for this. Also, you need to think about what you are going to store or use in this room. If you are going to buy some expensive electronics for a game room, then you will need to up the coverage for your personal belongings.

Whatever you do, you need to make sure that you're getting the exact right amount of additional coverage. This is why it's such a good idea to speak with your agent beforehand because he or she will have a good idea of what you need to secure. Trying to guess on your own may be a bad idea because you could end up getting too little coverage or even too much coverage. Either way, it's not going to be good, and you will just end up wasting your money in some form or fashion.

Consider Other Options

If you do need to increase your homeowners coverage when you add on to your house, then you may want to start shopping around for quotes from other providers. Your existing homeowners insurance company may not be able to give you a rate that you are comfortable with. Adding on to your home may end up causing your rates to increase significantly, and that might not be something you can handle financially after spending so much on an addition. If you want to save money, then you can just start looking around for quotes from other local providers.

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