Here’s how you can secure coverage for your home remodeling project.
Planning on a major home renovation? If so, you probably have a lot on your plate. But in between choosing the right contractor and selecting the perfect appliances you don’t want to forget to contact your insurance agent to discuss the extent, size and timing of your remodel project. It is important to discuss your renovation with your agent to determine if you have enough coverage thru your existing homeowner policy or if you will need additional coverage.
Reporting Your Home Renovation
Any time you renovate your home, it’s value increases. Your current homeowner insurance policy probably will not offer enough coverage to protect your home’s newly increased value. Before you begin your project, inform your agent about your plans so they can advise you properly for what you are doing and what is going on in the marketplace re: reconstruction costs including labor costs, materials, permits, fees, etc. You don’t want to have your project completed and find out your “new” home is under-insured. Many of the homeowners in the Santa Rosa fires unfortunately experienced this and were out of pocket thousands of dollars to rebuild their homes. A simple annual call to your insurance agent to review the status of your home and provide any updates can make all the difference of having your home properly insured and give you peace of mind.
Policy Changes
Once you report your home renovation to your insurer, your agent will explain your best coverage options. Generally, they will recommend gradually increasing your policy’s coverage limits as the project progresses. Additionally, if your plans include building a major addition, such as a new room or garage for your home, your agent may recommend specifically listing this addition on your policy to ensure that it is covered. If you embark on a major renovation and/or addition that will take some time, you may need a Course of Construction special insurance policy. Give your agent a call to discuss what would be your best coverage option.
Coverage for Contractors
Any time construction work takes place, there is a risk for injuries. However, it is not your responsibility to offer coverage for the workers who are handling your renovation. It is up to the contracting company to provide the necessary workers compensation and liability coverages. To ensure you are not held liable for any injuries that take place on your property, make sure that your contractors can produce proof of insurance before they start working on your home.
These are a few items to think about if you are planning a remodel or addition. If you have further questions regarding your homeowners insurance feel free to give us a call at Randy Jones Insurance Services in Pleasanton, California. Our dedicated team is ready to assist you with all your personal coverage needs today.
