Ocala ranks as one of the most affordable communities in which to retire in Florida — a state that's already famous because of its attractions for retirees. Nearly 20 percent of the city's population is over 65 years old. And once you join the ranks of the retired (or the semi-retired), you might have a lot more time for yourself. That might mean it's time to build that addition to your property for a hobby shed. Still, doing so means you need to pull out your homeowners insurance and see if you need to make changes to the policy.
Adding An Addition To The House
In the Ocala metro area, home values sit at around $155,000. Still, when you decide to build a room onto the home, you will likely add value to your property. Adding a room onto your existing home costs an average of $44,000 — though of course, costs vary.
You want to ensure that your homeowners policy will include coverage both during and after construction. Many policies will cover remodels, but with very strict limits attached. So, it's always best to inform your insurer before you make a change in the home. If you fail to notify your insurer, they might be able to refuse a claim on your policy, or greatly reduce your final settlement.
To offer you effective coverage, your insurer might add renovation coverage to your policy, or they might recommend that you buy a builder's risk insurance policy. Builder's risk policies cover properties under construction, and they're often good to have when undertaking major building projects.
Adding An Additional Structure To The Home
Perhaps you decide to build a hobby shed behind your home. It's a detached structure that isn't part of your house itself. In this case, your homeowners insurance covers the building with another type of coverage called other structures insurance. Besides hobby sheds, this coverage can also insure items like fences, gazebos, carports and related structures.
Be careful, however, as this coverage limit is usually no more than 10 percent of your total dwelling coverage. So, if you have $200,000 in dwelling insurance, then standard other structures coverage will only pay you $20,000 for these other structures. It's important, if your new addition will cost more than this limit, that you speak to your Ahrens Insurance agent. We can help you increase your coverage to appropriate levels.
Once you start to work less and be home more, a hobby room might be both a refuge and a convenient storage spot for various household and specialty items. Still, you need to make sure you have appropriate insurance coverage for this part of your home. Let your agent help you develop the right policy.
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