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Remodeling your home or business? Tell your insurance company

February 18, 2014


Linda Robertson  Personal Lines Account Executive

Linda Robertson, Platinum Accounts Executive



“I was awake for the entire procedure. I can’t wait to tell you every detail…I was even able to snap some pics! See you at lunch!”

Sometimes it’s OK not to know.

When it comes to home remodeling projects though, it is definitely NOT OK for your insurance company not to know.

Making improvements to your home or business can be an exciting — but expensive — process. In the greater Hartford area, the average major kitchen remodel costs upwards of $58,000 and adding a bathroom can run you over $40,000. (Here’s a great source for the average cost of other remodeling projects and how much they contribute to resale.)


The good news though is that not only will you have refreshed space to live, work, and play in, you’ll have a more valuable property, and that’s where your insurance company comes in.

Your carrier bases your coverage on the value of your property and includes that figure in your policy. If you suffer a loss, your carrier will use that figure to determine how much it will pay on your claim. If the value figure is outdated and doesn’t reflect expensive improvements you’ve made, your payout will not cover your entire loss.


Guess who will have to make up the difference? (Hint: You.) In addition, some carriers will actually charge you a fee at the time of loss if you didn’t tell them about the improvements!

Don’t add to the already significant cost of improvements by making this mistake. Take care of your insurance needs in advance so you are entirely covered if anything happens during the project. If construction materials such as tiles or lumber will be stored on site, make sure your policy or your contractor’s policy will cover theft or damage.

Tip: Don’t put off the call to your insurance agent. Get that done right away before you get lost in color wheels and appliance catalogs.

Tip: Some homeowner policies are comprehensive enough to cover most home additions and improvements, but others are not. Even if you think you’re covered, get peace of mind by checking with your agent.

Tip: If new furniture and fixtures are part of your addition, make sure to include those in your updated coverage.

Linda Robertson

Platinum Accounts Executive


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