Securing Home Insurance For Your Finished Basement
Finishing your basement adds to the total square footage in your home, increases its value, and also introduces new threats to your home. This is why you should ensure your home insurance coverage extends to your finished basement. Here are a few measures to help you do just that.
Get Permits and Ensure Professional Work
Any home addition or home remodeling project needs to be legal and safe, and this also applies to basement finishing. Therefore, if you have opted to dabble in DIY basement finishing, ensure you get the permits for all the works and the renovation has passed an inspection before using it. Ideally, however, you need to get the permits and a professional contractor, especially for risky installations such as electrical wiring. That will go a long way in assuaging your insurance carrier's concerns about your basement.
Contact Your Insurance Provider Beforehand
It's always available to consult your insurance carrier or agent before executing a major renovation project. That way you can know whether you are covered during the renovation. The insurance agent or company may also help you with tips to ensure the completed project doesn't send your insurance rates sky high.
Pay Extra Attention to Water Damage Protection
Most basements are prone to flood or water damage because the basement is typically lower than the surrounding land and is also the lowest part of the house. Therefore, you should be extra wary of water damage and take the necessary measures to prevent it. Such measures include:
- Extending downspouts away from the house
- Ensuring proper drainage around the house
- Install a sump pump in the basement
- Install leak water sensors in the basement
- Fix foundation cracks
Buy Water Damage Coverage
Your standard home insurance policy may or not cover flooding damage in your basement; it all depends on the exact cause of the flooding. Typically, coverage will apply if the flooding is caused by a broken plumbing system or an appliance, but not if it's caused by heavy rains, sewer backup, or seeping groundwater. Since basements are inherently exposed to flooding risks, it may be best to buy flood coverage or an endorsement to protect you from all flood-related damages.
Buy Coverage In Advance
Don't make the mistake of buying coverage only when you sense the flood season kicking in or when heavy rains are forecast. This is because flood coverage takes some time to become active (the waiting period is typically 30 days), and your basement may be damaged before that time. Ensure your basement is protected from all risks from the moment it is finished.
For more information, contact a company like Cypress Insurance.
