Home Insurance And Risks From Remodelling

By Alexander Standten


For many homeowners, choosing to do a remodel is a big decision. There is the inconvenience during the job to think about, as well as the time it takes to finish, and of course the price is a big consideration. On the other hand, your home may be much more livable with a renovation, and the value of the home could also increase.

No matter the size of the renovation you are planning, there are many considerations involved. You'll have to figure out your budget, what all you want done and the best time to have it done. With all of the planning people do, they sometimes forget that their home insurance could be affected by this work.

For a regular home insurance policy, minor renovations and repairs will not usually affect the coverage, but talk to your provider to be sure that your work is not in the list of exceptions that may apply. Go over your current home insurance policy with your insurance agent before beginning your renovations. Here are three areas that can leave you without coverage during a renovation:

If you are planning on hiring a contractor to work on your home, then you need to talk about insurance before having their crew set foot on your property. Be sure to ask for proof of liability insurance with an contractor or subcontractors you hire.

The main reason for this kind of insurance is to protect against liability which could cause serious damage to the home, or injuries to anyone involved. Be sure to investigate what the extension of the coverage is, when the policy will expire, and the limits. In most states this is required by law, however looking into it is wise. If an accident does occur on your property during renovations, you will be glad that you are insured as it could be a major issue if you are not.

Remember, insurance is an essential protection but you should be aware of potential safety risks around your property. Negligence claims can easily end up in court. Be sure that your contractors are vetted by people you trust before you hire them.

You will need to calculate how much your renovations will add to the value of your home before you start the work. The majority of homeowners leave themselves with no protection because they neglect to increase their insurance coverage. Speak with your insurance provider to ensure that you are properly covered during your renovation and after.

While certain kinds of renovations are being completed, your home could be more susceptible to theft or damages from weather. For more intensive renovations, you and your family may have to stay in temporary accommodations during the process, and at this time your standard home insurance policy might not provide any protection at all.

According to recent research, most insurers discontinue coverage on a home that's unoccupied for more than 30 days. Extra coverage will be necessary if this is applicable to you. You could be granted a vacancy permit by your insurance provider that covers wind and fire damage, as well as other stated perils. Most insurance companies are wary about providing this kind of coverage for vacant homes because the likelihood of loss or damage is increased during this time. If you are planning to be out of your home for a renovation you should consult with your insurance agent.




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