Completing a spring project is an excellent way to spruce up your home and enhance your family’s enjoyment of outdoor spaces. However, before you buy any supplies or head to the home and garden show to get ideas, you may want to consider how a spring project will affect your home insurance needs.
Home Insurance Basics
Most home insurance policies include two main components: Coverage A – Dwelling and Coverage B – Other Structures. Coverage A – Dwelling applies to your home itself, while Coverage B – Other Structures applies to the other structures located on your property, such as garages and sheds. The limit on Coverage B benefits is usually calculated based on the Coverage A limit. In most cases, Coverage B limits are equal to 10 percent of Coverage A limits. For example, if the limit on Coverage A is equal to $400,000, the Coverage B limit will be equal to $40,000.
In general, home insurance policies will not cover improvements made to the land around your home during spring projects. Examples of improvements that are not usually covered by home insurance include fire pits, trees, plants, raised gardens and hardscaping. However, Coverage B will apply to any projects you complete that involve new structures, such as pools, garden sheds, decks, gazebos, fences, and garages.
Exploring Your Coverage Needs
Spring projects are expensive and require a significant amount of time and effort. In order to ensure that your investments are protected, you need to make sure that your insurance coverage is sufficient. In some cases, the coverage provided by your existing home insurance policy may not be enough to repair or replace the structure you build if it becomes damaged or destroyed. To ensure that you have enough coverage for your project, you can ask about raising your limits or purchasing an extra policy.
Talk to Your Insurance Agent
Before completing any spring project around your home, it is best to discuss the implications of the project with your insurance agent. Although most home insurance policies operate similarly to one another, your limits or covered structures may be different from those mentioned above. Talk to your insurance agent to determine whether the project you plan to complete will be covered and how much coverage is available. If you determine that your current insurance coverage is not sufficient, you can make the necessary changes before you begin the project.
If you are completing certain types of projects that pose safety or underwriting concerns, you may also need to discuss any limitations or restrictions your insurer may impose. For example, if you are planning to install an outdoor fireplace or kitchen, you may need to observe certain clearances. If you are putting in a pool, you may need to forego a diving board and/or install a fence to qualify for coverage.
If you are planning to complete a project this spring, contact Stauffer-Klug Insurance today to discuss your insurance needs.