Insuring Home Improvement Project

As a homeowner, you may be renovating your home to either increase its value or improve your household’s standard of living. The project may be simple such as repainting the cabinets or complex such as adding a patio. Implementing projects like these is a great endeavour, but before you start laying the first brick though, you must address the issue of insurance – both the contractor’s and yours. Take note that your standard homeowner’s policy may not provide coverage if something is damaged on your property or if someone gets injured while working on the project. Without a rider or cover, you may get stuck with paying a hefty bill.

First, check your coverage if it includes a cover for the type of project you are about to undertake. If you are unfamiliar with the technical terms stated in the agreement, you can ask your insurance agent for assistance. Make sure that the terms cover the cost of rebuilding or new construction should your home be damaged or destroyed within the duration of the work.

Next, check if your policy has liability cover. Most do have a basic coverage for liability, but this may not be enough. Your agent will help you determine if you need to stretch the coverage. Furthermore, for an additional premium, you can buy a rider that goes into effect when you reach the limits of the terms stated in your standard policy.

Finally, you need to check the value of your home. Various enhancements, whether minor or major, can add significant value to your residence. That increase often translates to an equal boost in premium. Thus, you need to have your service provider’s representative to be involved early in the endeavour so he can determine the proper changes to your insurance agreement. Do not forget to notify your agent when your endeavour is completed.