A lot of time and energy goes into adding a deck, a new bathroom, or that spare bedroom you’ve always wanted. You have to have patience in deciding on the new look you want, as well as in seeking out the right contractor or friend to help you with the job. In the excitement of the project, you may overlook updating your insurance coverage.
It is understandable that you may forget to review your policy. However, you should be aware that additional insurance coverage may be necessary if you remodel your home. Your homeowners policy will likely cover any property damage resulting from your own improvements, the work of a friend, or the work a contractor performed. Liability for the homeowner is generally covered, regardless of who did the work, but coverage for additional parties alleged to have been negligent (such as a contractor) is likely not covered by the homeowners policy. It is important that any contractor you hire for your remodeling project has liability insurance, just in case a wall comes tumbling down or someone takes a serious fall. You should be sure to obtain a liability insurance certificate from all contractors as proof of this coverage.
Updating your insurance is more than just protecting yourself in case something goes wrong while the work is in progress. Additions will result in the replacement value of your home increasing, necessitating additional insurance coverage. Remodeling will also likely increase this value, but not always. For example, if you replace a roof, it generally will not change the replacement cost of your home because the cost to replace the roof remains constant regardless of the change.
Review Your Coverage
It is smart to evaluate your insurance coverage while your remodeling project is still in a stage of development. Before starting the process, you may want to consider speaking with us to make sure your current insurance policy fits the scope of your remodeling plans. The knowledge that you are covered may help you sleep better in your new bedroom or enjoy that new deck even more.