Home remodeling and insurance: What you need to know

By Higginbotham on April 10 , 2018

 Home remodeling and insurance

If you really want your house to feel like new, nothing tops a home remodeling project. Whether you’re adding a new room or giving your kitchen an upgrade, home remodeling is a great way to achieve your dream home without the headache and expense of moving. It’s still a lot of work, however, and there are many issues to consider – including insurance.

A lot can go wrong during a remodeling project.

You’re dreaming of your beautifully remodeled home, but keep in mind that things can go wrong both during and after the process.

  • What if the pipes aren’t installed correctly?
  • What if the wiring isn’t done right?
  • What if someone is injured during the remodeling?
  • What if severe weather strikes in the middle of the project?
  • What if a job is left half-finished?

These are just a few examples to get you thinking. Many things can go wrong during a remodeling. You want to make sure you’re covered.

Before hiring a professional contractor, make sure the contractor is licensed and knows all the pertinent building codes and permit requirements. Ask about the contractor’s insurance, including general liability, and what it covers. Make sure the insurance is active and that the limits are sufficient.  

If you’re doing some or all the work yourself, make sure you know what you’re getting into. Mistakes you make could result in major damages – and void your insurance policy.

Make sure you’re ready for anything.

Before work gets started, contact your insurance agent and discuss your homeowners policy. Ask your agent to help you identify any gaps in protection – risks not covered by either your homeowners policy or the contractor’s general liability policy.

These risks could include the following:

  • Damage or loss to your personal property when it’s stored outside of your home during the remodeling
  • Damage or loss to the contractor’s equipment when it’s at your house
  • Damage to the house that occurs during work, such as water damage while your roof is removed
  • Injuries the contractor or a subcontractor sustains on your property
  • Injuries you, your family or your friends sustain because of the remodeling, either caused by contractors or by resulting conditions (mold or asbestos exposure, for example)
  • Unknown damages or consequential conditions that become known later
  • Violation of a property easement or HOA requirements

Adjust your coverage limits when your home’s value increases.

Depending on the extent of the work, your house may be worth considerably more than it was prior to the remodeling. If so, don’t forget to talk to your agent about increasing your coverage limits and updating the policy so it includes any additions.

Have questions about your recent or upcoming remodel? Is it time for a policy review? Contact your Higginbotham agent today.

Tags: Home & Auto


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