Remodeling a home is very exciting for homeowners – but can be a risky endeavor. As more people are staying home, home improvement projects have skyrocketed. Rarely is a home in a more vulnerable state than during a remodel. Contractors are constantly coming and going, building materials are out in the open and the property is often left unsecured. It is important to note, that once you begin making changes to your home it becomes a structure in transition. Claims filed under a standard homeowners insurance policy while a structure is in transition will often be declined outright because renovations are taking place. If damage to the home is ultimately caused by a renovation, no matter how small – most homeowners insurance policies will not cover the damages. You must have the proper policy for the exposure.
Home remodeling insurance is property insurance that covers structures under construction or renovation. Home remodeling insurance and homeowner insurance are two very different types of policies. If you are making any changes to your home, you should consider home remodeling insurance.
What it Covers
Home remodeling policies, often known as builders risk insurance policies or course of construction insurance policies are available for ground – up new construction, remodeling, and installations. Remodel insurance covers your home during and after home improvements take place. It’s in place if you or someone else is hurt during a renovation in your home or if there’s been damage to your home or surrounding areas during the process. Additionally, builders risk insurance policies offer coverage for theft of building materials, coverage for losses due to ordinances or laws, and coverage for materials that are installed or uninstalled. These construction insurance policies can also cover costs of architects and engineering plans. When the project is complete, your homeowner’s insurance policy should reflect the changes in dwelling coverage to your home.
What about the contractor?
You can help protect yourself against potential lawsuits and making sure you, the homeowner, are protected by verifying that your contractor is properly insured, namely that they have general liability insurance and workers' compensation insurance coverage while they or their sub-contractors are on your property. Your contractor must have insurance – it is necessary. If your contractor is adequately insured, and so are you, you are much less likely to face financial hardship if damages or an accident does occur on your property. When a contractor is hired for work on your property, homeowners should always ask to be listed as an additional insured on a contractor’s general liability insurance policy. Additionally, homeowners should always request a certificate of Insurance from the contractor for their workers compensation insurance and find out if the subcontractors are licensed and insured as well.
Other Benefits of a Home Remodeling Policy
If you have home remodeling insurance and something does happen, you file a claim under the home remodeling policy and not your homeowner’s insurance policy. This means, you do not have to worry about your homeowner’s insurance being cancelled, non-renewed, or your rate being affected in the future due to a filed claim.
We’ve got the knowledge and expertise to help you with course of construction or builders risk insurance coverage. Give us call if you have any questions.