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 to 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.