Are you considering building a new sunroom or adding a pool to your home? Or maybe you want to shed a few extra pounds by getting a new high-end fitness equipment like the Peloton or the Mirror. It is important to know how these additions and items affect your homeowners insurance rates. Homeowners Insurance prices are determined by the cost to rebuild your home, the items in your house, and the injury risks.
Replacement Cost
The replacement cost of your house is the cost to build a similar house. An addition to your home such as a bedroom or a sunroom is likely going to increase your home’s value. Thus, it will likely increase the cost to replace the home. Because the cost to replace the home will increase you should call your insurance agent to get insured for the increase in value.
Content
Another factor that can increase the amount of your insurance policy is the content inside your house. Your homeowners insurance covers some household items, but you may need to buy additional coverage for more expensive things. For example, if you have expensive family heirlooms, antiques, or costly fitness equipment (like a Peloton) then you may need to increase your coverage or buy a small rider. Don’t be scared to talk to your insurance agent about getting additional coverage. Some riders are less than $30 a year, which is worth the peace of mind.
Liability
The risk of someone getting injured on your property also plays an important role in the cost of your homeowners insurance. For example adding a swimming pool or trampoline to your house makes it more likely that kids will enter your property. If someone enters your property (even WITHOUT permission) and gets injured then you can be subject to a lawsuit.
Conclusion
Having adequate insurance is very important because it helps you protect yourself and your assets. Give us a call at 248-362-1313 or fill the form below so we can help you determine if your new additions affect your homeowners insurance.
