When it comes to your home and homeowners’ insurance, there are a number of things that could raise your premium. When you’re upgrading your home, you could be digging deeper into your pocket for your homeowners’ insurance coverage.
You may decide to add elements to your home believing they will increase its value. There may be some trade off insurance-wise. If you’re prepared to pay more for homeowners’ insurance, here are some home renos or additions that could end up being rough on your house insurance:
A pool. There is nothing better than taking a dip in an in-ground pool during the hottest summer months, but a pool drives up the cost of rebuilding your home by about $5,000, and that means pushing your home into a higher classification when it comes to insurance. It will add about $30 a year in additional liability premiums.
Shingle or wood shake roofing. This can add an additional 10 per cent to your insurance costs. It’s the same when your roof needs upgrading. Insurance companies are more agreeable to stone or metal materials for a roof since they’re more durable and tend to withstand the elements better.
Fireplace or wood stove. Insurance companies see wood stoves as possible fire hazards. Your premium may go up and your insurer may ask to do a home inspection.
Finished basement. If your pipes burst, it could really do damage to a basement that has been finished. The same goes for sewage backup or flooding. You will likely pay more for your insurance if you have an updated rec room.
You can also expect to pay more if you use part of your home to conduct business. For instance, if you operate a daycare or a bed and breakfast or if customers and suppliers visit your home often, your premiums are likely to escalate.
On the flip side, home improvements such as wiring and plumbing upgrades, or installing a home alarm system or a fire-monitoring system, will most often bring your premiums down.