Search thousands of topics on CostHelper

BROWSE ALL TOPICS >> babies & children  cars  consumer electronics health & personal care home & garden personal finance  pets  schools small business sports weddings
CostHelper > Blog  > Post

Forgotten Expenses In a Home Addition Budget



 by Patricia Lynn Henley   Posted on August 5 2013



  submit to reddit Reddit

Items like construction costs, permit fees or debris removal aren't the only expenses to consider when calculating the total costs of a home remodeling project. An addition that significantly raises the value of a home might also increase the cost of property taxes and homeowner's insurance, based on that increase in value.

Whether you're adding a deck (averaging about $8,000-$11,200 for 16'x20') or a second story (about $105,000-$450,000 for 1,500 square feet), in some areas the local building department's final inspection and sign-off of a completed project may automatically trigger the attention of the property tax assessor, to determine if more taxes need to be collected each year. The exact amount of any tax increase will depend on location and be based on the value of the new addition, but it's a factor to consider when estimating overall costs.

It's also important to contact your homeowner's insurance company immediately after the project is complete, so if there's a fire or other damage, the coverage is enough to replace what was lost. Tell the insurance company how much it cost to build the addition, and they will determine the cost to increase the coverage on the existing policy. This can also be a good time to review your homeowner's policy and rates, to make sure you're getting the best deal.

So when penciling out a budget for a desired home improvement, remember to include the costs that can come after the work is done.

  submit to reddit Reddit


See Also
Check Out the CostHelper Blog Just For Men: Delivery Man Highlights Profitability of Sperm Donation OxyElite Pro Diet Pills Recalled After Links to Liver Failure, Death 10 Quick and Inexpensive Home Makeover Projects To Do While At Home

Comment On This Article


Email:  * Email addresses are not displayed.
Name:  This is the name we'll display with your post.
me on this computer
Comments: 
  *=required field.
 





Today's Featured Cost Articles