Fellow Agent with Homeowner Question

[G.Gordon]

I spend most of my time over in the Senior section so forgive me.

We just finished the basement to the tune of ~$20k in improvement cost. That added about 455 ft of living space and a full bathroom as well. What do I need to do to make sure I am fully insured? Call the agent? That is getting to be a problem. We are with AAA and although they paid like a slot machine on the roof replacement after major hail damage, customer service is lacking. Do I need to get a new appraisal?

Thanks ladies and gentlemen for your insight.

Thinking of moving back to AmFam or AllState, both good to us in the past, but moved to AAA to save money after we liquidated the motorcycles.

 

[Josh]

after we liquidated the motorcycles.

Say it ain't so!

Although unrelated, what bikes did you have?

 

[G.Gordon]

1. 1000 cc Vstrom by Suzuki
2. Replaced that with a BMW 1150 GS
2.a. Wife got the BMW 650 GS

 

[Accelerated]

You definitely need to report it, and it would be good to do so in writing (an email will suffice). Let them decide if an appraisal is needed.

I have encountered unreported additions/improvements countless times, and it does not always end well when I do...

 

[Milkman1265]

in the event that they didnt report in time, but had documented proof they renovated the basement. Does the policy improvement/betterment part cover?

 

[Accelerated]

in the event that they didnt report in time, but had documented proof they renovated the basement. Does the policy improvement/betterment part cover?

So long as they have that verbiage in their policy (not all policies do, and betterment/improvements endorsements are much more typical in commercial polices that homeowners), and you abide by the grace period that is typical with that endorsement, I wouldn't see why not. But why even open that can of worms when all you need to do is make a phone call, or send an email in the case of the OP, who cannot get anyone on the phone.

The reality is that regardless of what your policy says, if you do significant remodeling (especially adding 455 SF of living space), you should always notify your carrier. Average replacement cost for the majority of the US is between $90-110/SF. 455*90=$45,950. Even if you are lightly over-insured on your property before you begin, odds are that the extra space will bump you up beyond whatever your Coverage A is. I have seen it go both ways. One guy has a total loss fire and had just done a significant remodel, and the fire occurred within the grace period, and he got paid. Another did not have such policy language and lost out on a significant investment in his home.

Additionally, most carriers address home improvements very clearly. State Farm, for example, says:
"When you upgrade or improve your home, you may increase your home's estimated replacement cost. Your State Farm agent will then help you adjust your policy to meet your coverage needs. As part of your policy's provisions, you have 90 days to notify us of any remodeling or additions to your home that increases its value by $5,000 or more."

The best thing to do is to call your agent before you start, and just get the appropriate increase in coverage.

 

[Sales71]

I spend most of my time over in the Senior section so forgive me.

We just finished the basement to the tune of ~$20k in improvement cost. That added about 455 ft of living space and a full bathroom as well. What do I need to do to make sure I am fully insured? Call the agent? That is getting to be a problem. We are with AAA and although they paid like a slot machine on the roof replacement after major hail damage, customer service is lacking. Do I need to get a new appraisal?

Thanks ladies and gentlemen for your insight.

Thinking of moving back to AmFam or AllState, both good to us in the past, but moved to AAA to save money after we liquidated the motorcycles.

You Can Call AAA direct and let know of the upgrades. They will ask you question and update your replacement cost on the house very simple to do.

 

[Milkman1265]

also the coinsurance clause can come into question, if the value of the building is not properly insured too.

 

[G.Gordon]

You Can Call AAA direct and let know of the upgrades. They will ask you question and update your replacement cost on the house very simple to do.

Nothing is simple with them. For two years in a row, my wife has begged every year on the renewal date, to pay the umbrella liability policy... it is like pulling teeth to get anyone at AAA to do anything. On the liability policy, we've never got a bill, ever. Not when new or on it's renewal.

I'm done with them no matter what. I don't feel secure having one of my largest, losable assets insured with such morons.

I get referrals from a local AmFam agent, he's my first call.

AllState spent over $300k on my son's teenage mishaps and gets the second call. He is now a decade older and on his own, maybe they will let me back in the party. They invited me to not renew after that incident.