An in-law suite may not sound good to everyone. However, if you plan to add a new space onto your home for your family, it is important to let your home insurance agent know about it. The addition or renovation of your home can change its value. It can also create more risk in some situations. If you plan to do any type of extensive renovation, you need to know what to expect.
What Is an In-Law Suite?
There are various ways to describe this type of addition onto a home. In some cases, individuals add a new bedroom and bathroom to the back of their home. Or, they may decide to build a separate building completely on the same property. You may want to convert your basement into a walk-out for your in-laws to use. And, it does not have to just be in-laws. If you are adding extra people to your home, of any type, this can qualify. And, your home insurance agent needs to know about it.
Changing the Value of the Home
The main reason for this is because you are changing the value of the home sometimes significantly. For example, if you add another bedroom and bathroom onto the structure, you are increasing the square footage. If a fire occurred, and the home was a total loss, the insurance company may not pay for the extra square footage. This may make it impossible to recoup your losses. Your policy should match the current size and structure of the home.
Adding New Structures
Most home insurance policies cover your home and any attached structures. However, they do not automatically include other structures on your property. If you plan to build, convert, or modify these structures, be sure to let your agent know. Again, the value of these structures needs to be a consideration. Additionally, this may also add more liability to your home. Your agent needs to know the property is safe and well made.
The more information you provide to your home insurance agent, the better protected you are. Let them know about the changes you plan to make. Doing this before your work begins is best. The agent may offer some advice on how to keep costs down or how to minimize significant increases in your home insurance costs. And, you want to know you have coverage if you ever need to file a claim.