This is the time of year that many people begin remodeling projects or additions to their homes. It is an exciting time, but can also be a bit trying and you want to make sure you take at least a bit of the anxiety out of it. Making sure you are properly covered insurance-wise while you are in the midst of your construction project and after it is completed, will be important to your peace of mind. Here’s why.
During construction, you’ll want to make sure, if your project is a large addition, i.e. couple of extra bedrooms and bath or enlarging a kitchen and family room, or you are rebuilding an older home, that you have a “course of construction” insurance policy. This type of policy is temporary and covers building materials on your property and also provides personal liability for you while the construction is underway on your property. Another tip: we recommend you make sure your contractor(s) carry their own insurance and are licensed and bonded. This also helps to protect you while they are working on your home.
After your work has been completed, and you’ve added that extra square footage and amenities to your home, you should contact your insurance agent to let them know what you have done to your home. Added square footage, new flooring, windows, roof, a custom kitchen and baths — all add to the value of your home and would increase the cost to rebuild your home if it was destroyed, for example, in a fire. RJINS’s insurance carriers, like all insurance companies, utilizes third party rating companies to evaluate the cost of rebuilding homes based on the region in which they are located and the cost of demolition, labor, materials, fees, permits, etc. in that area. Insuring a home properly is then based on the Reconstruction Cost Analysis generated. This is why it is important to inform us before and after your remodel or addition. We know what to ask you and we know how to protect your investment! Give us a call before the dust starts flying. We’re happy to advise you to make sure you are properly protected.