You updated your home to a proverbial castle, and it probably feels great to enjoy the time there. Your update improved your quality of life and the other individuals living with you. Your home insurance policy from THINK Insurance & Financial Services helps you do this, and this blog explains why you need to update your home insurance policy after renovating your home.
Renovation Improves Your Home
Your Pomona, CA, home improvements didn’t just make your home more fun to spend time in; it also made it more valuable. Improving the curb appeal, adding insulation, building a deck or porch, or many other projects add value to your home.
Some items, like a new bathroom or bedroom, add thousands of dollars to the value of it. Renovating the kitchen adds about $20,000 in lasting value to your home. That figure applies if you update all appliances, update the cabinets and the counters, and replace the floors if they need it. Many projects add whopping amounts to the value of your home.
Your Home Insurance Requires an Update
Aha! When you increase the value of your home, you need to increase the value at which your insurance covers it. When you purchased your policy, it included the home value from the purchase. If you paid $240,000 for your home, that’s the amount you insured it for.
Just as the bank checks the home’s actual value before offering you a mortgage and only funds it, home insurance lets you insure it at its actual value. When you renovate, adding $100,000 of value, you need to update the home policy to cover the home’s new value of $340,000.
Contact THINK Insurance & Financial Services Today
Insure your Pomona, CA, home fully. Contact THINK Insurance & Financial Services today for a home insurance update. Let us help you protect your financial investment in your home.