By Peggie Simmons
Are You Thinking of Remodelling in Arizona? Consider the Effect it May Have on Your Insurance
But, what does it mean to be underinsured? Underinsured means that your insurance policy only covers a portion of your losses in a claim. Underinsured homeowners have insufficient coverage, leaving them with bigger expenses if they file a claim. Imagine filing for a claim because of a disaster, only to discover that you don’t have enough coverage. You won’t be able to recover the costs of losing your home to such a disaster WWW.THEPOWERISNOW.COM
simply because you didn’t inform your insurance company of the new house upgrades. You may have to pay tens of thousands out of your pockets to cover the additional costs. That’s pretty bad. This is what happens when you are underinsured. REMODELLING YOUR HOME IN ARIZONA AND WHAT YOU SHOULD KNOW Once in a while, several house owners remodel their homes to match modern styles. Some add a pool to their homes, others add an office space for their businesses, while others upgrade their kitchen or bathroom. Remodelling increases the value of your home, in turn increasing the cost of your home insurance. This happens regardless of the type of renovation you are carrying out. If you proceed with adding a pool to your home, you should know that the liability risk will increase, ultimately increasing your home insurance rates. With this pool added, you should consult with the insurance company immediately and have them look at your insurance options. The company may likely recommend a higher liability coverage than the standard one of even an umbrella insurance to cover costs of getting injured in by the pool or other worse case scenarios. l
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emodelling your home is a fantastic way to add more value to your home, but do you know that it can affect your insurance? A lot of homeowners don’t know this, and end up having an underinsured home. According to CoreLogic’s Residential Cost Handbook, about 64% of homeowners don’t have enough insurance and their homes are underinsured by an average of 27%.
