subject: Remodeling Insurance Considerations [print this page] Remodeling Insurance Considerations
There are an awful lot of things to take into consideration when you are planning and commissioning a large home remodeling project. One of the things that many homeowners tend to overlook is how their insurance and that held by the contractors they hire stacks up. Here are the things you should be checking before work begins to make sure you are fully covered and not leaving yourself open to any nasty surprises down the road.
Home Remodeling and Your Homeowner Insurance
Before the remodeling work begins, schedule an appointment with your insurance agent to determine whether or not changes need to be made to your homeowner insurance policy. Your agent should be able to help you determine whether or not leaving the policy as is would cover all your financial losses and liabilities should the worst (a fire, a flood, bodily harm) occur while the remodeling work is in progress.
You also need to determine how your remodeling project is going to impact the value of your home once it is completed. Most large remodels will add value to it, some of them significantly. Although you will not need to make insurance policy changes reflecting this until the project is finished, it helps to bring your insurance agent into the loop early so that they can prepare a new policy that can go into effect as soon as everything is done.
Home Remodeling and Your Contractor's Insurance
It is absolutely essential that you are comfortable with the level of your contractor's insurance before the project begins. Many reputable contractors are surprised by just how few homeowners bother to ask about such things, let alone request proof in the form of insurance paperwork. A good licensed remodeling contractor is required to carry a certain amount of insurance by law. This typically includes accident and disability coverage, in addition to liability (or errors and omission) coverage. Ask to get a copy of all these details in writing and then have your insurance agent take a look at it to ensure that between your contractor's insurance and your own homeowner's policy you really are fully covered.
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