Looking to complete some renovations? These home improvement insurance tips make sure everything is covered while you take the steps to improve your life.
Keyword(s): home improvement insurance
Are you thinking to install a new, sturdier roof to your home? Or do you just want to expand your living room to make a place for a home office?
Whatever the type of improvement, remodel, or extension you have in mind, keep a peace of mind with a home improvement insurance.
What is it and how should you go about it?
Read our five great tips to make your project go smoothly.
1. Check your home improvement insurance policy thoroughly
What exactly does it cover?
There are risks of damages that may occur during an improvement and can have costly consequences, for example, a busted water pipe.
It's a standard cost covered by a home improvement insurance policy.
However, before you start a project, talk to your insurance agency to know exactly what the coverage extends to.
Read the contract carefully. And if you feel like you need extra coverage, don't hesitate to ask for more information.
2. Verify your contractor's insurance
A professional contractor with a legal license should already have three types of insurance:
- Damages done during works
- Liability coverage
- Artisan's compensation
Even so, it's still important to ask for a written proof to avoid any problem in the future.
You should also inform your insurance provider that tradespeople are going in and out of your house.
Note that during this period, your coverage for theft and malicious damage may be restricted.
3. What about DIY home improvement?
You may be thinking to do everything by yourself or with a couple of family members. That's a great idea to save money!
But the truth is, you're still open to liability if someone gets hurt during works. And the accidental damage risks are still present (refer to point #1).
In that case, check with your insurance agency if the coverage extends to the damage risks done by a non-professional.
Also, check if your homeowner's insurance has a no-fault medical coverage for the people who work for your home improvement. It may be a good idea to raise the amount.
This should be clear in writing before you start your DIY project.
4. Organization is key
The bigger your project, the more you need to be organized.
Keep every paper and make a copy. This includes the original (and possibly revised) blueprint of the project, receipts, estimates, and every contract you signed.
Don't forget the small, easy-to-lose papers, like proofs of material purchase.
Also, take pictures as the project progresses. Not only they will serve as your "before" and "after", but they can also help in facilitating your home insurance policy updates.
5. Review your home insurance
A home facelift changes your house value, probably by a significant margin!
Here are the types of home improvement that may increase the actual value of your house (and might make your home insurance not sufficient anymore):
- Kitchen and bath
- A new pool
- Larger living space
- A home office
- A roof
If damage occurs to the improved house, you may not be as covered as you think. Talk to your insurance company to review your policy.
Pro tip: don't be afraid to negotiate for a discount! Customer's loyalty is something that the majority of insurance companies value highly.
With this five tips about home improvement insurance in mind, you can start realizing your home improvement project without a worry.
If you have any question, our team will be happy to connect with you.
You can also leave us a comment below with your questions, or with your experience about home improvement insurance.