Lang Insurance Blog

All You Ever Wanted to Know About Insurance

How Remodeling Your Home Can Affect Its Value

If you’re considering upgrading your home this spring or summer, be sure to let Lang Insurance know. There are lots of reason people want to update their home. Whether it’s to add value to your property or to give it an interior facelift to bring the house into the 21 century, you’ll want to review your home insurance policy as the home’s value increases.

The coverage limit on your homeowner’s policy is the amount of insurance you must reconstruct your home in the event of a total loss. All costs associated with replacing or rebuilding your home are considered when developing this coverage limit. When you make changes that increase the value of your home, you may also need to increase the coverage limit.

Keep in mind that even smaller projects could increase your home’s value. As you begin to plan your home’s upgrades, take an inventory of your home’s new features inside and outside the house. Ask yourself these questions:

  • Does the addition on your home have a different roof material than the rest of your home?
  • Does the new deck you built include a kitchen, built-in grill or electric fireplace?
  • Is your contractor installing built-in shelves and TV cabinets?
  • Are you finishing your attic area to create an extra room, such as a bedroom or family room?
  • Did you update your windows to a more efficient type?

You may put lots of time into picking out countertops and appliances for your new kitchen, type of wood for cabinetry, color of brick to match the original portion of your home, quality of decking materials and other factors. Remember to share these important changes with us as they could impact your home’s value.

Many insurance companies like Lang Insurance offer a replacement cost endorsement to ensure you will get the full reconstruction cost to rebuild your home in the event of a covered total loss, or a percentage more than the limit of insurance on your declarations page. If you would like to explore this option, call one of our agents today. 

Call Lang Insurance at 636-229-7000 to discuss your homeowner’s coverage so that we can make sure your home and property are adequately reflected in your policy in the event of a loss.