Who else has done some sort of remodel to their basement? Recreation room, TV room, Theater room, wine room? Did you know that most all homeowner insurance policies carry a “sub limit” on water/sewer back up? On some it may be as low as $1,000, others could be $2,500 or $5,000. Water back up coverage is very important when the basement is even partially finished.
The good news is you can always buy more! So if you did a serious remodel, like add $20,000 of real property to your basement, you can get it covered. The problem is, many homeowner’s when they do this just assume they have it covered by insurance, as it is part of their home. So the homeowner never consider’s to call their insurance broker when they do this and review their homeowners insurance. The insurance broker only finds out at the time of a claim and then delivers bad news.
It pays to communicate properly with your insurance professional. I always say we want to tell you “no problem” and not “you are not covered”. I always welcome, “I have a question on what I am thinking of doing”, then I can advise properly on homeowners insurance.