Sunroom installation is undeniably a worthy investment! There are many monetary implications a homeowner might be worried about when installing a sunroom. Insurance and property taxes are some of the financial concerns! But how does adding a sunroom affect insurance and property taxes? Does adding a sunroom increase taxes? Gain insight from professional sunroom installers at American Home Center in Plant City, FL here!
How Does Adding A Sunroom Affect Insurance And Property Taxes?
When you add a sunroom to your home, you are adding square footage, and a square footage addition means that you are increasing the footprint of your home. This overall addition affects your insurance premiums and property taxes. But how much insurance rates and taxes will be involved? Well, keep in mind that adding a sunroom will not only increase your property taxes. It will also increase the resale value. So, does adding a sunroom add value? Absolutely! For instance, an estimate projects that if a homeowner installs a sunroom, they can recoup 51% of its initial expenses when reselling.
When you start the installation, permits are needed to be pulled. After being pulled, the tax assessor will receive a notification. When the installation is completed, the county will send a tax assessor to verify the additional value of that new investment. Nevertheless, some homes might not be assessed quickly, and for that reason, there will be no need for additional property taxes. They will be needed when the county assessor gives an estimate. So are sunrooms subject to property taxes? Yes!
What Determines The Actual Rate?
Each county has its specific rate. So, what a homeowner gets from one county might be different from another county. The tax includes a percentage of the value from the property assessment. For instance, if the assessment rate is thirty percentages and the home is worth exactly $100,000. Then, the assessment will be pegged at $30,000. The county will then apply property tax to this amount. In addition, if the sunroom installation adds $20,000 to your property value, the new value will now be $36,000. That means you will get an additional tax of $6,000.
How Sunroom Installation Influences Insurance Premiums
Square footage added to your home also means that you will need to increase policy coverage. If you are making any significant change to your home, you would need to inform the insurance company. Thereby, upon installation, you will have to notify them so they can update your policy. When higher-end materials are used, it translates to an increase in premiums. That means you will be entitled to a quality replacement if there is a need to make a claim. But you should not be scared. When quality materials are used, it means less replacement which will translate to fewer claims.
Need further information on “how does adding a sunroom affect insurance and property taxes?” Is a glassroom considered an addition? Want to consult a professional in Plant City, FL, for quality materials? Contact us at American Home Center today! Our services are affordable, and we deliver the best services local swears by! Call us now to schedule an appointment.