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Don’t Forget Insurance For Your Home Improvements!

At Amber Valley you’ll find home remodeling experts with the tools and experience to help you breathe new life into the home you already know, own, and love. But as fulfilling as a remodeling project can be on its own, renovations are also a great way to add value to your home—value that you should be sure is covered by insurance in the event your home is damaged due to an accident.

So if you are going to be remodeling here are a few things you should discuss with your insurance provider to make sure everything is squared away.

Increased Square Footage

Home insurance policies cover the square footage of your home. If an addition adds to that square footage it needs to be reported and the policy updated.

New Home Features

Adding (or removing) a deck, outbuilding, pool, or some other addition creates new elements that will change the insurance policy, and sometimes in unexpected ways depending on the equations and risks involved. Depending on the size or type of change you are making you may even want to discuss it with your agent well before the project, so you don’t have any unexpected surprises later on.

High-End Building Materials

Hardwood, stone, or other expensive high-quality building materials will raise your home’s replacement value and will therefore be more expensive to ensure. Keep receipts of the materials used in your home in order to prove the costs so that your updated insurance plan is as precise as possible.

Household Fixtures or Appliances

You can choose to insure fixtures, appliances, or other household items by their actual cash value or replacement cost. Actual cash value covers the original purchase cost of the item minus depreciation, which would lower your payout (often substantially, as depreciation works quickly). Replacement value, on the other hand, will pay out the full amount of the item but incurs a much higher monthly premium.

Given the number and cost of appliances and fixtures that can go into a modern luxury kitchen, bathroom, or even laundry room, choosing the right type of insurance can have a major impact on the cost of your insurance or the financial impact if an accident should occur. Study your plan and work with someone knowledgeable before you make your decision.

 Potential Benefits

Some home improvements actually have insurance benefits, rather than costs. In particular, many insurance policies offer discounts or other benefits for those who chose to invest in damage resistant roofing materials (as these will help protect your home from tree or water damage), or electrical or plumbing upgrades to the reduce the risk of fires or water damage.

By offering financial incentives insurance companies hope to head off many incidents before they happen, reducing the number of expensive insurance payouts they need to make.


Of course, we aren’t insurance agents or lawyers and can’t tell you what specific policies or procedures are best for your situation. If you’re pursuing major home improvements you should always get in touch with your agent and find out what you need to do, what the costs or benefits will be, and how much protection you’ll have during and after the project is finished.

For all your West Michigan home improvement work, call Amber Valley Construction today! Personalized estimates are available.

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