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Are You Planning Home Improvement Projects?

09.17.15

It does not matter if you have purchased a home that is newly built or a fixer-upper, a time will come with you get the urge to make some home improvements. Start with the things that you can do that will add to the value of your home. Take on the quick projects and simple changes around your home first. Next, decide if you will be doing the work on your own or hiring a professional. However, perhaps the most important step is notifying your insurance agent of any home improvements to your house.

If you are planning to add a new room to your home or make some other improvements, you will most likely need to update your home insurance policy. This is the best way to make certain that any new additions or improvements are adequately covered. In addition, you will also need to make sure that you are protected against liability by ensuring that any workers you hire to perform renovations on your home are properly covered as well.

Before you begin any construction, you need to get in touch with your insurance agent to increase your current coverage and make certain the new changes to your home are reflected in your policy. Your agent will be able to help you decide on just how much additional coverage you need to purchase as well as any extended liability or other insurance products your plans may require. In addition, it is a good idea to keep your insurance agent well-informed on the progress of your remodeling project, just in case you alter your plans along the way and your need for coverage changes.

Avoiding Liability

Prior to hiring a general contractor to work on remodeling your home, you will want to request a copy of their workers compensation policy. If they do not have any insurance or the coverage that they do have is not sufficient, you could find yourself in financial trouble in the event that a worker or subcontractor is injured over the course of the job.

This means that you could be held legally responsible for paying the cost of their medical and rehabilitation expenses. In order to protect yourself from a situations such as this, you may need to invest in more liability coverage by increasing the limits on your home insurance policy.

Other Insurance Concerns

Be sure that your contractor has general liability insurance. This will provide coverage against omissions or negligence that could lead to injuries or damages to your property. You should also check if your contractor has builders risk insurance as well. This will cover any damages to your home or building materials, even if they have not been installed yet.

Update Your Replacement Value

Once your remodeling project is complete, the value of your home will increase. Therefore, you will need to talk to your insurance agent and have the replacement value of your home recalculated. Then, you will be able to adjust your home insurance coverage accordingly. In addition, you may also need to increase the amount of coverage that you have for your personal possessions if any new items, such as electronics or furniture, were purchased as a part of your home improvements.

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