DIG Insurance & Business Magazine Summer 2021 | Page 29

HOME IMPROVEMENTS

Fixer-Upper

As You Take On Home Improvements Or Building Renovations , Be Sure Your Insurance Coverage Keeps Up With The Changes .

With months of quality time at home , many of us found something we wanted to improve . Some homeowners decided to build out dedicated family workspaces . Others embraced the kitchen as a center of safe gathering and decided to spring for the renovation they ’ d been dreaming about for years .

The same motivation to take on fixer-upper projects and building improvements has been true for commercial property owners . Many restaurant owners added outdoor seating or reconfigured their interior spaces to allow for social distancing .
We ’ re even seeing an increase in vacation property owners deciding to become full-time residents of Ocean City and its surrounding communities , turning their summer getaway into their primary home .
Renovations , additions , enhancements — all of these property investments boost value and increase property replacement cost – the cost to repair or replace the property in the event of a loss . Even sprucing up the exterior of a home or commercial building with a fresh paint job , adding a fire pit , or building a swing set for the kids is considered a property improvement .
The thing is , many people don ’ t think about calling their insurance partner and letting them know “ We ’ re going to build a pool this summer ” or “ We decided to increase the patio space .” Once the project is finished and you ’ re enjoying the new addition , if damage or an accident occurs , you might not have proper insurance to cover the loss .
Before you dive into a renovation or hire a contractor , keep these tips in mind to protect yourself .
REQUEST A REPLACEMENT COST INDICATOR .
Your insurance partner can perform a study to determine the replacement cost of your home , taking into account improvements and additions . It ’ s important to
RENOVATIONS , ADDITIONS , AND ENHANCEMENTS BOOST VALUE , INCREASING THE COST TO REPAIR OR REPLACE YOUR PROPERTY IN THE EVENT OF A LOSS .
note : some carriers will not insure a property that is undergoing a major renovation , like a whole-home gut job . This type of project introduces additional exposures and may require Builder ’ s Risk insurance coverage until construction is completed .
RENEWAL REMINDERS .
As an owner of a commercial property , your renewal review should begin well before the date your policy expires . This is the prime time to connect with your insurance advisor and discuss the state of your property , including any upgrades and renovations . If necessary , an adjusted value will be put in place for the next year ’ s policy to ensure you ’ re properly protected . Some policies build in an automatic increase of two to four percent to allow for valuation increases and minor improvements , but this may not be enough to cover your addition or renovation project .
ASK FOR A CERTIFICATE OF INSURANCE .
Contractors working on your commercial or personal property need liability coverage and should add you as an additional insured on their policy . Before you sign any contract with a trades professional who will perform work , ask for their certificate of insurance .
Not sure if your policy will cover the full value of your property ? Have you made a home improvement or building enhancement ? Give us a call to review your limits . +
BY : DIANE FREDERICK , CISR PRIVATE CLIENT SPECIALIST
Diane Frederick is our Personal Lines Private Client Specialist with over 20 years of insurance experience . 410.213.5554 dfrederick @ deeleyinsurance . com
Samantha Glaeser specializes in both Personal and Commercial Insurance , helping clients identify coverage gaps . 410.213.5594 sglaeser @ deeleyinsurance . com
BY : SAMANTHA GLAESER , CLCS CLIENT ADVISOR
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