Tuesday, December 31, 2013

Home Insurance And Risks From Remodelling

By Alexander Standten


Deciding to remodel a home is not something that homeowners take lightly. Renovations can be pricey, time consuming and sometimes a huge inconvenience. The benefits of remodelling are quite compelling, including a higher resale value, and the fact that your home will be more comfortable.

Whether the renovation that you're mulling over is major or minor, there are some considerations to keep in mind. You'll have to figure out your budget, what all you want done and the best time to have it done. Remember that your home insurance policy could be affected, so take that into consideration before you begin.

For a regular home insurance policy, minor renovations and repairs will not usually affect the coverage, but talk to your provider to be sure that your work is not in the list of exceptions that may apply. Before starting a remodelling project, you need to brush up on your current policy and talk to your insurance agent. These are three of the possible exceptions in your policy that may affect your coverage:

If hiring contractors is part of your renovation plan, you must speak with them about insurance before they do any work on your home or your property. Liability insurance is important, so request proof that your contractor or subcontractors have this form of protection.

Insurance like this is mostly to protect against liability that causes damage or injuries. Go over the policy to ensure you know when it expires, the limits involved, and the extension of the coverage. In most states this is required by law, however looking into it is wise. Worksites unfortunately are places where accidents will occur, and if this happens on your property, be sure that everyone involved is covered by insurance.

Keep in mind that you should be clearing the work site of any safety hazards, even if you are covered by insurance. Negligence claims can easily end up in court. Your contractors should be safety-minded, and you should check their references before hiring.

Prior to commencing with the renovation process, calculate how much your property will be worth after the remodelling is complete. The majority of homeowners leave themselves with no protection because they neglect to increase their insurance coverage. Talk to your agent to make sure you're fully covered throughout and after the renovation.

Sometimes renovations can leave your home more exposed to potential risks such as damaging weather or theft. If you're home requires extensive work, it may require you and your family live elsewhere during the renovation and if so, your standard homeowners policy may be rendered useless.

It appears that the majority of insurance providers cease coverage on homes that are left unoccupied for over thirty days. Extra coverage will be necessary if this is applicable to you. You could be granted a vacancy permit by your insurance provider that covers wind and fire damage, as well as other stated perils. A vacant home has a greater chance that damage or loss could occur, so vacancy insurance is something that a lot of insurance providers are wary about insuring. If you are planning to be out of your home for a renovation you should consult with your insurance agent.




About the Author:



No comments:

Post a Comment