When it comes to calculating the total cost of adding a new addition to a home or property, many people neglect considering additional potential costs related to the project. Most are aware of the exemplary cost of adding a new addition or converting a space, such as construction costs, zoning and permit fees, debris and waste removal, supplies, and labor.

These standard costs are usually all there is for a small or moderate space addition, but for larger home addition remodeling undertakings, there is more than meets the eye. Continue reading to learn about the hidden costs after completing a home or property addition.

Property Taxes

Once a building inspection department signs off on a home addition after it is complete, the property tax assessor may re-evaluate the home’s worth to determine if more taxes should be paid annually for it. Large home addition projects most often increase a property’s value, subsequently moving homeowner’s into a different tax bracket. Increased home value means increased property taxes, plain and simple. The degree to which these property taxes increase is based on the increase of the home’s value. Along with increased property taxes, homeowners’ insurance costs increase as well. These are unforeseen but potential costs that should be added into a homeowner’s remodeling budget in terms of large-scale additions and space conversion. Examples of large-scale additions include adding a spacious deck or patio to a home or property, adding another level or story, building a guest house, and more.

Homeowners Insurance

It is encouraged to contact your homeowner’s insurance carrier once a large-scale home remodeling project is finished in order to discuss adding additional insurance coverage to your existing policy for fire damage and other structural damages for this area. By neglecting this duty, your new home addition may not be covered under your policy. They will determine how much coverage the space needs based on the overall cost of the project.

Restoration By L & B, LLC

Call Restoration By L & B, LLC at 317-454-3612 for information about space conversions and home additions in Indianapolis and its surrounding areas. Owner and licensed general contractor, Lee Elliot, is happy to answer all of your questions concerning home remodeling, renovation, restoration, and repair. We offer all of these general contractor services and more! And we will beat any competitor’s price, guaranteed! Call 317-454-3612 for professional home remodeling services in Indianapolis, IN today.