Uncategorized June 3, 2024

Have You Recently Upgraded Your Home in Colorado? It’s Time to Revisit Your Insurance Policy!

If you’ve recently made significant improvements to your home, from installing a new roof to upgrading your electrical systems, or even adding a fresh coat of exterior paint, you’re not just enhancing your living space—you’re potentially increasing your property’s market value. This increase is a substantial achievement, but it also raises an important question: Does your current insurance policy fully cover the new value of your upgraded Colorado home? 

Why Update Your Insurance?

When you enhance your home with upgrades such as new roofing—common in Colorado due to its weather conditions—or by installing advanced security systems, you’re not only increasing the security and appeal of your home but potentially increasing its market value. If an unfortunate mishap were to occur, you might find that your existing insurance coverage isn’t sufficient. This could mean that your upgraded investment is underprotected.

However, it’s not all about increasing costs. Certain upgrades, such as those advanced security systems or fire safety features, not only boost your home’s safety but might also qualify you for discounts on your insurance premiums. It’s a scenario where improving your home’s safety and efficiency can also be financially rewarding. 🛡️💸

When Should You Contact Your Insurance Agent?

  1. Change in Ownership: Notify your agent if the name on the deed changes to prevent any delays in claims processing.
  2. Replacement Cost Adjustments: Consider the replacement costs for high-quality materials, such as granite or custom millwork, especially pertinent for historic properties in Colorado. Updates like new roofing or siding should also be considered.
  3. Additions or Upgrades: Enhancements such as a new sunroom or upgraded electrical systems significantly increase your property’s value; ensure your policy reflects these changes. Aesthetic upgrades like new exterior paint can also affect valuation.
  4. Recent Acquisitions: Have you purchased significant items for your home, such as luxury outdoor equipment or art? These may require appraisal and inclusion in your policy.
  5. Rising Property Values: In light of surging local home prices, perhaps due to market trends or nearby developments, adjust your coverage accordingly.
  6. Outdated Deductible: If your financial situation has improved, consider raising your deductible for potentially lower premiums.
  7. Rent Roll Changes: Regularly update your Loss of Rents coverage to reflect any changes in rent rolls.

The Real Estate Perspective

Curious about how these home improvements might impact your property’s market value in Colorado? Whether you’re planning to sell or just assessing your investment’s worth, understanding the link between home upgrades and market value is crucial.

As your seasoned Denver real estate professional, I’m here to guide you through how your home improvements translate into real-world value. This insight is invaluable whether you’re planning to sell soon or are strategizing for future enhancements.

Ready to Chat?

If you’re considering whether your recent home upgrades necessitate a policy update, or you’re curious about how these changes have potentially increased your property’s market value, I’m here to help. Reach out today, and let’s ensure your real estate decisions are as informed and strategic as they can be!