Home renovations can be costly, but insufficient insurance coverage can make the process exponentially more expensive. Below are some do’s and don’ts that can help keep you protected during a home improvement project.
Double-check your contractor’s insurance coverage. Workers’ compensation and liability insurance are musts. Ask to see the necessary certificates and confirm sufficient coverage before you sign a contract.
Don’t assume subcontractors are covered. If your general contractor is subcontracting work from a plumber, electrician or another professional, make sure those companies carry insurance. The general contractor’s policy may not cover them.
Increase your replacement value. Improvements made during a renovation enhance the value of your home. Expanding your insurance coverage ensures your policy fully covers the cost of rebuilding your home as is.
Don’t forget to include new items. Add updated appliances and furniture purchases to avoid potential gaps in coverage.
Raise the liability coverage limit. Making this change can help protect a homeowner in the event of an injury while the property is under construction.
Don’t neglect an attractive nuisance. Are you adding a swimming pool, trampoline or other feature to your home that might attract and pose a risk to children? Should an accident involving an attractive nuisance happen, you’d be liable — whether or not you gave permission to use it. Additional liability protection can help ease that burden.
Insurance plays an important role when you embark on a home improvement project. The right type and amount of coverage can help you avoid pitfalls on the road to owning your dream home.