If you’re making some improvements to your home now, it’s time to give your SAV-ON Insurance agent a call. A home remodeling project can leave you underinsured! About a third of the folks who remodel their homes neglect to tell their insurance company about the improvements they’ve made.

That oversight could leave you with less homeowners insurance coverage than you’d need if your home was damaged or destroyed in a disaster.

On the positive side, you could be paying more for insurance than you should if the project improved your home’s safety. Doing things like replacing an untreated and flammable cedar-shake roof with a fire-resistant material like fiberglass-asphalt shingles can save you money.

Is Your Home Underinsured?

Almost all homes start out with the right amount of insurance. But as homeowners upgrade and improve their homes, their insurance can come up short.

That’s because even with quality replacement-cost coverage, there’s a limit on what insurance can pay based on the features of your home at the time you bought your policy.
In the insurance industry, “replacement coverage” means replacing a damaged used item with a similar new item of like kind and quality.

So, for example, while your policy would cover the cost to replace your damaged, outdated bathroom countertops with a nice marble-look product, it probably wouldn’t fully cover the costs of replacing it with pricier genuine marble or tile.

Typically, if remodeling is so extensive that you need to take out a home improvement loan, your lender will insist that you update your insurance.

But it doesn’t take something as major as adding a bathroom, bedroom, or second story to push an insurance policy beyond its limits. Smaller projects done over time can creep up.

For example, one year you replace your sheet-vinyl floors with hardwood. The next year, you give your bathroom a spa-like makeover. And a few years later, you upgrade to stone countertops and chef-quality appliances in the kitchen.

Before you know it, your home’s value can exceed the amount it’s insured for!

Check Your Coverage

Make sure your beautiful home upgrades are covered. Call SAV-ON Insurance today at 888-867-2866 to review your homeowner’s insurance with one of our friendly agents. We’ll make sure you’re covered! Or visit https://sav-on.com