Remodeling your home can be a big investment of your time and money but can also add significant value. Before you start to remodel, it is important to reevaluate your home insurance needs. Make sure you keep your agent informed about your remodeling plans as they can help you with your coverage needs as they change.
If you are building an addition to your home, make sure you increase the insurance coverage on the structure of your home right away. If you wait until construction is completed, you may be responsible for any costs to repair or rebuild if the addition is destroyed or damaged. Contact your agent before or shortly after you begin construction to increase your coverage to reflect the renovations.
If you are hiring a general contractor, ask for proof of workers compensation and contractor’s liability insurance. Workers compensation pays for medical and rehabilitation expenses and covers lost wages if the workers sustain injuries on the job. You don’t want to run the risk of injured workers coming after you if the contractor does not have proper insurance. Contractor’s liability covers the contractor for any damages to your home while under construction. If any of the coverages are insufficient, you may need to fill in the gaps by extending the limits of the liability portion of your homeowners policy.
If you are planning to buy additional furniture or electronics you may need to increase the amount of insurance you have on your personal possessions. Make sure you keep the receipts on your purchased items and add them to your home inventory.
For those that like to do-it-yourself, your insurance needs will depend on who’s helping you and if you are paying them. If a family member or friend is injured, their insurance should cover the bills. If you are paying them, you should purchase workers compensation insurance to cover your liability if an injury occurs.
Whatever your remodeling plans are, contact us to review your coverage and ensure your insurance is always up to date!