the project. The change-order policy is also important, as you have a right to change the project if you feel that alterations need to be made after the contract is signed. This is a way that contractors protect themselves, but it also gives you a firm idea of what costs will occur should you change your mind during the completion of your home addition. Also, don’t forget that if you secure a loan for some or all of the addition’s costs, you’ll have to pay loan origination fees and processing fees, which can amount to 1-2% of the total loan amount. Lenders typically require appraisal and inspection fees to determine the viability of your home’s addition as well, so expect to pay these fees. TAXES AND INSURANCE With an addition to your house, you can expect your insurance premiums to go up. Depending on the replacement cost for the new addition, your premiums may increase significantly. This depends on your insurance provider, but a good way to ballpark your new premium is to take your home’s value and add in a replacement cost of 125% of the new addition’s price. For a home that was originally valued at $200,000, adding a $100,000 addition raises the value to $325,000 in total, so you can expect your premiums to jump a
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