If you have decided to remodel or renovate your home, you will probably be preparing yourself for several weeks of upheaval, mess and stress. However, have you thought about what such a drastic project will mean for your home insurance? What if someone is injured during it? Will your existing liability insurance cover you for potential legal action? Will your current insurance policy cover the cost of unexpected damage? Before beginning any renovations, you should contact your insurance agent and know for certain exactly what your current policy covers.
Do You Need to Increase Your Level of Coverage?
Most property insurance policies will allow for remodeling work and renovations, but it is always prudent to check the small print on your contract. The chances are that the work you carry out on your home will increase its value. This means you need to increase your level of coverage before the work starts, since any damage to the improvements you’ve made could result in costs that you’re currently not covered for. Yes, your premiums will increase, but you’ll have the peace of mind in knowing that your newly refurbished home is insured for its true market value.
What Homeowner’s Insurance Needs to Cover
Adding an extension to your home will require that you inform your insurance provider, since this new structure will not be included in your policy. Although a new roof or replacement windows will probably not require additional coverage, it is always a good idea to inform your insurance company before the work begins. Any improvement project has the potential to increase the value of a property, so make sure that your level of coverage is at least the projected market value of the property after the work has finished. You should also check that any work materials, such as paint and carpeting, are covered while the work is in progress.
Check That Your Contractor Has Sufficient Insurance
Building projects have the potential for causing injury to contractors and the workers they employ. You could be liable for any injuries that happen on your property unless the contractors you hire have adequate liability coverage. Ask you contractor for the original version of their insurance certificate, but make sure it is up-to-date. Any contractor you hire should have liability coverage for bodily injuries and damage to your home, and this applies to all sub-contractors that are involved in the project as well.
Most home improvements are relatively small and are completed without a hitch. However, tearing down walls, restructuring or extending your home is a relatively risky affair, and you need to ensure that you are covered for all eventualities.
Give us call today at 800-766-4478, and one of our specialist agents will be happy to discuss your Michigan City home insurance situation in detail.