The holidays are weeks away, and as we get ready to host small groups of family and friends during this “unique” year, you may consider ways of sprucing up your kitchen in a quick and easy manner. When does upgrading your kitchen cause the need for additional insurance coverage and additional insurance premiums?
Major Renovations vs. Minor Updates
Every home deserves some love and small changes can make big differences such as a quick coat of paint, new art on the walls or refacing of old finishes. These are all examples of minor updates which make a world of difference, do not cost a lot of money, and will not increase the amount of insurance coverage you need. Performing minor updates to your home to make a new look for your family to enjoy can also add to the resale value of your home.
Examples of quick and easy minor updates to your kitchen can include:
- Refinishing your cabinets – depending on the material of your kitchen cabinets, you may be able to sand, repaint, and seal your cabinets giving the center of your home a fresh and modern look.
- Paint the walls – with years of cooking, steaming, and grilling the walls in your kitchen are bound to have become dingy and faded over time. A quick new coat of paint will quickly brighten up your kitchen.
- Accessorize your kitchen – placing new and functional items on your countertops can make any kitchen look like a show kitchen.
- A family platter, modern knife block, or kitchen trivets will work well for an easy upgrade.
- Declutter the countertops – allow your new accessories to shine by decluttering your countertops. Chances are you may not have enough storage space in your kitchen cabinets because you may have items you never or rarely use or are damaged and have not been disposed of in the past. Take a look at your cabinets and make decisions as to what can be donated, recycled, or repurposed to make room for the items on top of your counters.
- Organize your cabinets – after you have decluttered, review what organizational accessories are available for your needs. Whether it is a utensil organizer for your drawer, peg system for your lids and storage containers, or a stackable spice rack, these are all available for your use.
Typically, major upgrades will be expensive, may require licensed contract workers, and cannot be done over a weekend. Upgrading your builders grade countertops to granite countertops, changing your cabinetry to more modern finishes, and upgrading all your kitchen appliances are examples of major upgrades to your kitchen.
How do these upgrades impact your insurance premium?
Minor upgrades typically do not impact your premium, as the cost to replace these items is not significant. However, should your kitchen remodeling efforts be major, such as new granite countertops, then your insurance premium may be impacted. The coverage afforded under Coverage A of your policy will cover the structure of your home including kitchen cabinets, countertops, and appliances. Coverage C of your insurance policy will cover all your contents, or anything located inside of your kitchen cabinets. If your remodeling efforts have increased the cost to replace your kitchen in the event a disaster strikes, then you must speak with your agent to ensure the proper adjustments to your policy are made.
There is good news; it is possible in the course of your major upgrades, you may have also updated your electrical and or plumbing and may now qualify for additional premium discounts. Always speak to your agent about your remodeling efforts to ensure adequate protection and obtain all the discounts available for your home.
As the holidays approach we hope you and your family enjoy the weeks leading up to them with some crafty DIY projects or if a major upgrade is in your future, call your agent and protect the value of your new additions. Edison Insurance Company is available to assist you. If you have any questions about your policy and coverages, contact your agent, or call us at 866-568-8922.