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Should I tell our insurance company about a reno?
Our basement was unfinished when we purchased our home. We've finished the basement. We used a contractor, but permits weren't required. Should we tell our home insurance company about the renovation? What are the benefits/downsides?
Asked By Brian | Forest Park, IL | 255 views | Tips Advice | 8 months ago
Answer(7)
Marjorie Turner
RE/MAX Collaborative
Hey Carlos! I would think you would want to update your policy to include the finished basement for replacement value!
- 8 months ago
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Marty & Abby Champagne
RE/MAX Market Place
I would tell them in case of a fire etc. or the damage down there wont be covered.
- 7 months ago
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Julianne Clark / Your Lowcountry Realtor
Charter One Realty
Now that it is actual living space -- you may wish to cover the space in case of claim/damage in the future. Yes, your premium may increase. The other thing to think about is taxes -- many times it will not be taxed or taxed as equal to above ground living space if not permitted. If you finished this are for a family member with a disability -- there could be credits involved. You have definitely increased the value of your property!
- 8 months ago
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Tom Matthews
Gibson Sotheby's International Realty
Brian,
It is human nature that we want to keep our costs down, but insurance companies have become skilled at finding ways to not pay out claims. I feel that the marginal increase in premiums is not worth the risk to the remainder of my asset to not notifying them about an increase in living area in your home.
- 3 months ago
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Chris McNatt
McNatt Real Estate and Auction
I would recommend letting you Insurance carrier know. The benefits is you have updated your policy to include your renovation and extra sq ft of finished area . Your down side may be a small insurance price increase due to the nice renovation.
I feel the it beneficial for you to update .
- 8 months ago
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Barbara Huff
Compass
I would recommend letting your insurance company know of the updates so they can adjust your insured value in case something happened in your basement that you needed to file a claim.
- 8 months ago
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Brandin Wilson
First Team Real Estate
Illinois may have different laws, but in california, If it adds value, I would definitely let the insurance company know. Especially if you would like the insurance to repair it.
- 8 months ago
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