2018 Renovation Considerations – Renovations are a great way to increase your home’s value and livability. You will need to do a bit more than just evaluate paint and carpet samples though before you get started.
Renovations and Home Insurance
Before you begin the work of renovating your home, you must call your agent to discover how your insurance company wants you to handle:
- Home insurance limits: if this renovation will increase your reconstruction costs after an insurable incident then you may need to increase your limits before you get started. That way, if something should happen during or just after completion of the renovations, you are completely covered.
- Liability coverage: If you are doing work yourself, or hiring a non-professional to assist you, then your insurance agent may suggest that you increase your liability coverage. That way if anyone visiting your home or helping out experiences an injury, you’ll have adequate protection.
- Notifying the insurer: Ask your agent if you should notify your insurer in advance of the potential renovations. Your insurer may want to know when you have the work scheduled and what is being done by whom.
- Discounts for code compliance: If you are renovating and observing new, more stringent building codes during the process, your insurance company might see your home as posing a reduced risk and that could prompt discounts. Find out from your agent what new codes are especially helpful in obtaining discounts and see if you can make those changes happen.
Other Insurance Considerations
If you plan to have a contractor come in to do work during your renovation, in addition to making sure he or she has the right licenses, make sure he or she is insured and bonded.
- Liability insurance: If someone gets injured on the job site, the contractor’s liability insurance can handle the claim.
- Worker’s compensation: If your contractor hires employees then worker’s compensation insurance will ensure that they get wages and expenses should they suffer a work-related injury.
- Bonds: Hiring a bonded contractor offers you some assurance that if certain terms of the contract are breached, you will be made whole again.
It’s exciting to contemplate the difference your renovations will make around your home, but don’t get wrapped up in the fun of remodeling before you do your insurance homework. If you aren’t sure what steps you should take to get ready or you want to work with us on increasing your insurance limits before you break ground on your projects, give us a call.