Learn about the Hidden Costs of Home Remodeling!

With mortgage loans harder than ever to obtain, many homeowners are opting to remodel their existing homes rather than move to a new home. This may be especially true in high cost real estate areas, such as Long Island. Home insurance costs are often affected by a remodel, so there are many things to consider before starting your project.

While building structures from wood may be cheaper, they also result in higher insurance rates due to their increased flammability. Conversely, structures built from cement and steel may help lower your rates. Consider the durability and maintenance requirements and the susceptibility of the materials to weather damage when deciding what materials to use.

Those who live in a coastal region or flood zone should carefully determine if any home additions could increase their home’s risk of flooding. These risks can greatly affect your insurance costs and should be avoided if at all possible.

Taking out a loan for your remodeling project may also increase your home’s insurance premium, particularly if your original mortgage is paid off. Insurers typically lower the rates for homeowners who own their home outright due to the simple philosophy that you take better care of items that fully belong to you.

Now could be a great time to remodel your home, providing you plan ahead to avoid spending more money in the future on your home. Long Island home insurance for you property may need to be increased if you’ve made substantial changes. So be sure to contact an agent to learn more about how your renovations might affect your coverage!