5 Common Misconceptions about Home Insurance

Making your home fit your family is always so important. It is not always easy to do, though. Sometimes you need to expand it. When adding a home addition, recognize that you are not just adding space to your home. You are also adding value. As a result, it is critical that you update your home insurance policy to match the new value of your home. When do you need to do this?

What Type of Home Addition Are You Doing?
There are various ways to expand your home. It may be a simple step, such as expanding the size of a bathroom or adding in a new bedroom in the basement. These generally do not change the overall floor plan of your home. They can add value, though. 

For example, adding another bathroom or bedroom may make your home more valuable if you sold it. However, what is important here is to understand the cost to rebuild it in case of a loss.

Here’s an example. If you convert an open space in the basement to a new kitchen, you are doing a significant amount of new work. The cost to rebuild that kitchen if the home insurance company totals it is higher than simply replacing an open space. Be sure to speak to your agent about this. You may need to add value to your home.

Larger Scale Renovations and Updates
There are other instances in which your home addition is more significant. You may add a second story to the home. You may expand the square footage. When this occurs, you are adding a lot more value to the home. And, the cost to rebuild it is now significantly higher. 
This means you need to have a higher amount of home insurance coverage in place. More square footage means you need to have a higher valued policy to cover the cost to rebuild.

What to Discuss with Your Agent
Before you invest in a large home addition, talk to your agent about the plans. Then, get an estimate of what the new home insurance cost will be. 
When you take these steps, you gain better insight into what you can expect to pay. You also can discuss any new risks from the home addition. For example, adding a second kitchen adds more risk than adding a bedroom simply due to the fire threat.

Making your home a better fit for your family is important. Protect that risk by safeguarding your home insurance policy with McCartan Insurance Group, Inc at (515)633-2273 for more information on home insurance.