Home renovations are exciting, but they can also be very stressful. We choose to remodel for many reasons. Whether you are renovating due to updating an old structure, adding more square feet, replacing a damaged structure or if mother nature jumpstarts a remodeling project, check out these three major things you need to know about whether your insurance policy is going to cover the project.
1. Review Your Policy
The first thing you should do is review your homeowners policy to make sure it covers your home during a remodel. If you’ll be placing any furniture, appliances, or other contents in an on-site storage container, reviewing your coverage becomes especially important. During your remodel, if you plan on buying any new furniture or adding on a new addition to your home, make sure to speak with your Lighthouse agent to increase your contents or dwelling coverage! This will make sure you have enough bodily injury and property damage coverage to cover the project. Check your policy to determine the limit of each and adjust accordingly. The size of the project, the value of the materials being used, and your location may make it beneficial to add some additional coverage. You could even qualify for additional policy discounts depending on your remodel. Make sure you frequently update the inventory of your home’s contents to ensure you have proper personal property coverage. Here are a few helpful home inventory apps to help speed up this process!
2. Examine the Contractors Insurance
You shouldn’t be responsible if your contractor botches a job, has their supplies stolen, or another person injures themselves on their equipment. Check with the contractors/subcontractors to see if their general liability coverage would cover accidental injury to someone other than another worker or themselves. If the contractor’s insurance company doesn’t cover stolen materials, consider adding the coverage yourself. If you’re unsure, ask your insurance agent to review the coverage for you. Reputable general contractors should also have active workman’s compensation insurance and automobile liability coverage.
3. Document Everything!
Take pictures throughout the renovation process. Properly documenting the construction will only help you down the road. A better alternative would be to videotape the process as well which also makes contents inventory simple.
Thinking about starting a project this year? Check out these 6 winter home improvement projects to help get you planning.