Your Home Value Has Increased, But What About Your Homeowners Insurance

Your kitchen cabinets are in, your granite countertops are gleaming, and your stainless steel appliances are humming with computer- controlled efficiency.

Or are you? You' re done with your home makeover at last. If you' re like most people taking part in the home makeover craze, you' re enjoying not only how much you have increased your home's beauty, but also how much you have boosted its value. Value Report" prepared by Remodeling magazine in cooperation with REALTOR� Magazine, the cost of a major kitchen remodel averages$ 54, 241 nationwide. According to the nineteenth annual" Cost vs. Depending on where you live, a kitchen remodel can raise the resale value of your home anywhere between$ 38, 884 and$ 58, 004, with the national average being$ 43, 60If you have purchased new appliances, window treatments, furniture, or electronics, the value of your personal property has gone up, too. It may need a makeover, too.

Your home value has increased, but what about your homeowners insurance? Renovations and updates can cause you to be underinsured in two areas: dwelling protection and personal property protection. You also will want mention new personal property, such as major appliances, and window treatments, furniture. You will want to notify your insurance agent of changes that affect your dwelling, such as new windows and doors, custom countertops, kitchen cabinets, islands, and lighting, flooring- anything attached to the structure. When insuring personal property, be sure your policy covers replacement value, not actual cash value. Many items- especially appliances and electronics- depreciate over time. The actual cash value is the cost of replacing an item minus the amount it has depreciated.

The depreciated amount will not be enough to replace a lost item with a new one. If disaster strikes, you always can get another home makeover, but you can' t get an insurance do- over. It's always a good idea to keep your insurance agent up to date about your home, but a remodel or renovation should trigger an immediate call.