Are you planning on making some upgrades or renovations to your home? Finally getting that new bathroom you’ve been eyeing or installing new cabinets in the kitchen? That’s always an exciting change, but can definitely add some stress to your plans when it comes to making sure insurance is set up and covering what you need.
With so many different variables to consider during a remodeling project, it’s important to know what kind of personal insurance coverage you need and what homeowners insurance options are best to keep everything covered from the various liabilities that should be considered.
The last thing you want to worry about during or after a renovation project is whether you’re covered for damages or losses. This could be the difference between having enough money to finish the update and having to worry about paying out of pocket for damages gained during the project.
Protect Your Home Before You Start
It’s important to have homeowners insurance in place before you start taking a hammer to the wall or picking up a nail gun. While it’s an exciting thing to finally get your dream kitchen or bathroom underway, making sure you’re covered is the most important step in the process. If your new addition were to be damaged or destroyed before you went over your limits, you could end up paying for repairs or rebuilding the damaged area out of pocket.
Also, before you hire a general contractor to complete your home remodeling, ask to see a copy of their workers’ compensation policy they should have in place. If they have no insurance set up, or even insufficient insurance, their workers or subcontractors injured during the project could end up suing you, the homeowner, for medical or rehabilitation expenses. With this in mind, you may benefit from increasing your limits of your homeowners insurance policy.
Other Things to Consider
Make sure your contractor is carrying general liability insurance coverage as it covers negligence or omissions that could damage your property or injure people working on the remodel. Also, builder’s risk insurance is a piece of coverage that can be considered as it covers damage to your home and building supplies, including things like materials that have yet to be installed.
Also, when the project is finally complete, the value of your home will more than likely end up being higher than before, or that’s a goal at least. At this point, you should consider working on your homeowners insurance policy with your supplier to recalculate the replacement value of the home and adjust your coverage from there.
Again, getting that project underway is exciting, but having the right insurance and knowing exactly what needs to be covered so you have the money you need to finish your dream project should be the first step in the entire remodeling process.