Finishing a basement can add a whole new level of enjoyment to your home (pun intended) and can also help make your home more desirable for potential buyers should you decide to put it on the market.
Before you behind the process you should consult with your home insurance provider first to see how the changes may impact your insurance coverage and rates, just like before any home renovation project.
WILL FINISHING A BASEMENT INCREASE THE COST OF HOME INSURANCE?
A general rule when it comes to insurance is the more valuable something is, the more it costs to insure.
Finishing your basement can certainly increase the value of your home which could have an impact on what you pay for home insurance.
To make sure your newly finished basement will be covered by your home insurance policy, contact your home insurance provider for advice before you start the project.
NOTE: The value added to your home with a finished basement may not be equal to the cost of the renovation. According to FlowerStream.ca, you should only expect to get back roughly 70% of the costs of finishing your basement in terms of home value increase.
Something else you will want to inquire about with your insurance provider is whether or not you have sump pump insurance coverage.
This becomes even more important when you finish your basement because a sump pump backup will be much more costly with freshly installed flooring and drywall being ruined.
HOW TO PROTECT YOUR FINISHED BASEMENT FROM LOSS AND DAMAGE
Aside from talking above coverages, limits and costs related to your home insurance after a basement is finished, something else your insurance provider will likely stress to you is loss prevention.
Foundation Waterproofing Niagara says this about basement waterproofing: “Safeguarding the health of your family and the value of your home starts with a dry basement.”
Here are several things to keep in mind when it comes to protecting your newly finished basement:
KEEP THINGS OFF THE FLOOR
This is especially important if water is a concern for those living near shorelines or in lower lying areas.
Shelving is your best friend here. The more valuable something is the higher it should be off the floor.
TEST YOUR SUMP PUMP
This should be done on the regular as a part of your overall home maintenance schedule. As often as you change the batteries in your smoke and carbon dioxide detectors and change the filter in your furnace should be the same with testing your sump pump.
You don’t want to have to deal with what comes after water damage!
RUN A DEHUMIDIFIER
This is good advice for almost any home with a basement, especially during the warmer months.
Mold and mildew can be dangerous and destructive and they thrive in moist environments. Running a dehumidifier often can help keep you in control of the moisture levels in your home.
Not sure what those are? Consider purchasing a couple of these humidity monitors from Home Hardware and place them strategically around the house.
INSTALL HANDRAILS ON STAIRS
This is a good idea for any stairs in or around your home, but especially important for your basement stairs after the basement is finished to help with the extra up and down foot traffic.
12% of falls among seniors in Canada occurs on or as a result of stairs according to Canada.ca and installing (and using, yes I’m looking at you Ethel!) is one of the best ways to reduce this risk.
INSTALL EXTINGUISHER AND DETECTORS
It’s important to have both fire and carbon monoxide detectors installed on every level of your home regardless of whether your basement is finished or not.
With a finished basement this becomes even more true.
Don’t forget a fire extinguisher! Best practices says to have one handy on every floor of your home as well.
Adding a finished basement to your home can be a huge benefit to your family so no doubt you’re excited to get started.
We hope this information if helpful for you along the journey and if you have any questions about your insurance or if you’d like a quote for home insurance please reach out to us anytime!
Erie Mutual Insurance proudly serves the commercial insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.
Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.
