Updating your Gainesville, FL condo can offer a fun way to express your personality. It also may require an insurance review. Which requires an insurance review – remodeling or renovating?
Renovating Requires an Insurance Review
The insurance agents at Peninsula Underwriters Insurance Agency want you to understand why renovating your home requires an insurance update but remodeling does not. When you remodel, you use what you already own in a new way. When you renovate, you alter the structure of your condo with new walls, built-in bookcases or a desk, etc.
That means a renovation physically alters your home and adds value to it. Renovating requires a condo policy review, so your policy still covers the full value of your home. Because remodeling uses what you already have, it does not require an update.
What happens if you don’t update your policy?
Without a policy review and update, your condo policy covers exactly what it did before. If you insured your condo for $100,000, that stands. Here’s the thing. Your renovations added to the market value of your home. If you transformed a walk-in closet into a bathroom, you raised the value of the condo by about $20,000.
Without the review and update, your insurance only covers the original condo as you bought it. You would lose all the money you had invested in renovations without updating the policy and home value.
What to Do
Contact Peninsula Underwriters Insurance Agency and talk to one of our agents about your planned or ongoing renovations to your Gainesville, FL condo. Take some photos of the finished work and email them to our office to show the finished state of the condo. We will update your policy and provide you with updated insurance paperwork and any premium changes applicable.
