Are you finally adding onto the kitchen you have been complaining about for years? Are you converting a porch into an extra room for your home? Or maybe you are doing a complete overhaul, tearing out walls to expand an already existing room. No matter what the remodeling project is, you are probably excited for the finished project and how the new space will alter your home life. You can finally throw that big party without the worry of too little space or maybe you made room for that pool table that you always wanted. The finished product cannot come soon enough. Remodeling projects are not as simple or quick as you think. It is important to consider your homeowners’ insurance when remodeling.
This is not Extreme Makeover: Home Edition; projects take time and money. It is important to consider your homeowners’ insurance policy when remodeling.
If you are hiring a contractor, you should check their insurance coverage. Hiring a contractor is a good idea, because you want to take the time to do the project right. Professional assistance ensures that you get exactly what you want without any additional hassle. But, the contractor can impact your insurance. When hiring a contractor it is important to check his insurance and make sure that it extends to the employees or the potential sub-contractors. Ask for a certificate of insurance. If the coverage isn’t there, then if one of the workers gets injured on the job in your home, they may end up suing you and you might be held responsible.
Workers’ Comp, General Liability and Builder’s Risk are important aspects that your contractor should have in their coverage. Worker’s comp protects the workers, general liability covers negligence on the contractor’s part and builder’s risk covers any damage to your home and materials, including materials that have not been installed yet. It is important to know if your contractor uses only his own employees or hires independent contractors to work for him.
If you are considering being your own contractor, you may want to think twice. It can be quite costly and take additional time to do things on your own. And, you never know what is hiding behind the walls and if you’ll be able to handle it on your own. Also, if you are the general contractor and you hire a subcontractor to work in or on your home, you may be held responsible in the case of an accident or injury to the worker. Your homeowners’’ insurance policy may have liability insurance, but it may not be enough to cover your assets if you are sued for liability or medical costs. If you are going this route, you may want to ask your local independent insurance agent about workers’ comp insurance.
So you had the coverage needed to protect the workers on the project, and the project was completed smoothly, without any injuries. Now you have an extra 1,000 square feet to your home and are enjoying your new and improved home. Well now it is important to talk with your independent homeowners’ insurance agent about your insurance policy. The new addition increased the value of your home, and the replacement value of your home probably rose as a result. This means that if your house were to suffer a total loss, you may not have the coverage to cover the cost to rebuild. This is why it is important to talk with your insurance agent before starting a project, This will ensure that your policy covers the cost of the materials in the process and ensures that when the project is finished you have the coverage you need for your new home.
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