The Impact of DIY Improvements on Insurance Policies
Are you considering carrying out some DIY home improvements, but are unsure how it might impact your home insurance policy? It’s a valid question, as sometimes insurance companies might not always be clear about how such adjustments may affect your policy and the all-important financial protection it offers in case of an unexpected disaster.
What Kind of DIY Home Improvements Count?
It’s important to note that only DIY projects that don’t require the services of a contractor or other skilled professional count as home improvements. So if you’re sanding down some shelves or putting up some wallpaper yourself, you don’t have to worry about it being included in your insurance coverage. However, you should always check with the insurance company prior to any major projects or renovations, to make sure you’ve covered all your bases.
The Impact on Your Insurance
Generally speaking, any DIY home improvements don’t automatically affect your policy, so you don’t have to worry about your insurance provider demanding additional payments as soon as you get your paintbrush out. Of course, when carrying out more extensive renovations, such as refitting a kitchen or expanding the size of your home, you should alert your insurer, as it may necessitate an update to your coverage.
Understanding the Risks of DIY Home Improvements
Unfortunately, as DIY home improvements don’t always go as planned, some things might be out of your control – so it’s best to not take on any projects that could potentially damage or reduce the value of your home. This may include pulling down walls to create a bigger living space, or doing roofing work yourself. If you’re embarking on any mission of this sort, try and speak to an expert first, otherwise your insurance may be null and void if anything goes wrong.
What if You Encounter Problems?
If the unimaginable happens and you have an accident or cause physical damage to your property while attempting a project, you can still be covered by your insurance. However, it’s important to note that your provider might argue against your claim if you haven’t been clear about the home improvements and only informed them afterwards.
What About Liability Coverage?
If you’re doing minor DIY jobs such as painting, you don’t need to worry about updating your liability insurance, as these kinds of tasks require very little expertise and won’t contribute towards putting anyone else at risk. However, if you’re carrying out more complex transformations such as refitting a bathroom, different rules may apply.
Do You Need to Inform Your Insurance Company?
The simple answer is yes. Even if the home improvement plans don’t result in any physical changes to the look and feel of your house, it’s still good practice to give your insurance provider a heads up. That way, if anything were to go wrong or any damage cause, you’d be sure to be able to claim for it.
What About Items You Install?
If you’re installing any items for DIY home improvement projects, such as appliances, furniture, or security features, they should generally be covered by your regular home insurance policy, as long as you’ve informed your insurer about them first.
What if You Have an Accident?
If you had an accident while carrying out DIY home improvements – or anytime else for that matter – you could be covered by your existing home insurance policy. However, do check the small print of your insurance policy to make sure that you’re not excluded from making a claim or that there are any other eligibility criteria in place.
What if You Need Professional Help?
It’s likely that your home insurance policy will cover the cost of professional help should you need it. Generally, all you need to do is check what your current provider offers, and then speak to them about your plans and requirements. However, keep in mind that a single major renovation project will likely increase the cost of your coverage.
Final Thoughts
Home insurance is an essential way of protecting both you and your home from unexpected mishaps, so it’s best to always be honest and upfront with your insurance provider from the start. The impact of DIY improvements on your insurance policy doesn’t typically have to be too serious, but it’s always best to be prepared for any eventuality.
In conclusion, diy home improvements can have an impact on your insurance policies. Make sure you understand exactly how the renovations you are considering will impact your insurance and also take into account that you may need to update your policy and inform your insurer. By following these steps you can protect yourself and your home from any unseen mishaps.
What types of DIY improvements require notification to homeowners insurance companies?
1. Adding a room or deck
2. Installing a pool or hot tub
3. Renovating or remodeling a large part of the home
4. Replacing the roof or siding
5. Installing a home security system and/or cameras
6. Converting an area into a home office
7. Installing a generator
8. Installing a new heating or air conditioning system
9. Installing hardwired smoke alarms
10. Constructing a fence or outbuilding.
What types of home renovations can increase home insurance premiums?
1. Renovations that increase the size of the home.
2. Renovations that involve anything electrical or plumbing.
3. Renovations that involve installing new fixtures or appliances that are high-end or expensive.
4. Renovations that involve any type of home security system.
5. Renovations involving pool or hot tub installations.
6. Renovations to a home in an area prone to natural disasters, such as floods or earthquakes.
7. Renovations to a home that increases the risk of more expensive damages.