The time to remodel your home is finally here! The colors are picked, the floors have been decided on and you are finally ready to start. Before your start construction, there are just a few things you should know.
Working with a general contractor
The best way to minimize your risk when you remodel your home is to hire a general contractor. The list of contractors can be large, but not all of them are equal. When you are comparing contractors, ask them to provide a Certificate of Insurance and/or copies of their policies. They should have Workers’ Compensation, General Liability and Builders Risk coverage. This will protect both them and you in the event of any issues during construction. Reviews are also a great place to look. Google & Facebook reviews give past clients the opportunity to share their experience with the contractors. Good or bad, they can tell how the process went for them.
Working with sub-contractors
If you decide to manage the project on your own, you assume all the risks. Hiring sub-contractors who can provide you with a certificate of insurance or copies of their policies showing general liability and workers’ compensation coverage is mandatory for your legal protection. Otherwise, you could be subject to workers’ compensation laws, should they become injured while working on your home.
Doing the work “DIY”
If you do the work “DIY” style, there is still a change of help from others. If a friend or relative helps out as a favor and gets injured, your homeowners insurance typically covers the cost of their injuries. This however will be subject to your policy limits. For an extra layer of protection, it’s a good idea to also carry umbrella liability coverage, which kicks in to provide liability coverage above your homeowners insurance policy.
Homeowners Insurance review after renovations
Experts estimate that 1 out of 4 remodeling projects adds at least 25% to the value of a home. Yet, often most homeowners forget to increase their coverage to protect their investment. When making a major change to your home, it’s important to talk to us about insuring those changes. Most homeowners insurance policies require 100% of the home’s replacement cost, so it’s important to raise your home’s policy limit before your project begins.
Adding to your home is exciting, but poses financial risks. Contact us today for assistance on determining the value of your home and making sure you are properly covered.
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Umbrella Liability Insurance