Home Renovation Insurance Tips

By
Real Estate Agent with Russ Lyon Sotheby's International Realty

If you’re thinking of renovating your home in McCormick Ranch or any neighborhood, you might not be thinking about the need to insure the property. But it’s very important to make sure the project is adequately insured. A home renovation can be overwhelming with a lot to think about such as overall vision, financial benefits, finding a reliable contractor, and ensuring everything goes smoothly. 

 

Once you’re properly insured at your McCormick Ranch home, then you want to make sure all the players involved are insured such as the general contractor and any subcontractors. Here are a few insurance tips I came across for anyone considering a home renovation. 

 

Notify the insurance company ahead of time

 

Big or small, any home remodeling project at your McCormick Ranch home will, most likely, increase the value of your home. As a result, your home-owners insurance policy should reflect this before you get started. Once the project is done, make sure your policy align’s with the home’s new replacement value. Don’t forget to insure any new appliances or furniture you purchase to go along with the renovation. 

 

You might also want to consider increasing the liability coverage while the renovating is going on just in case someone like a neighbor is injured on the work site. This could save you a lot of money in legal and medical fees. 

 

Confirm the general contractor is licensed and bonded

 

In addition to being insured, it’s important the general contractor is licensed and bonded before they start working at your McCormick Ranch home. In case the contractor fails to complete the project, the surety bond could cover the financial losses. The agreement should also “mandate the compliance of building codes and proper permits.” 

 

Additionally, it’s critical that a contractor carries workers’ compensation and liability insurance.

 

Find out if the general contractor you hire to do the renovation work in your McCormick Ranch home uses subcontract builders, electricians, and plumbers. Typically, these employees don’t work full-time for the contractor so, therefore, not included in their workers’ compensation policy. All of these individuals should have liability insurance. 

 

Builder’s risk insurance

 

You might also want to think about buying builder’s risk insurance before getting your McCormick Ranch home remodeling project underway. This insurance covers the building materials and equipment belonging to the contractor or subcontractors not covered by homeowners insurance. 

 

Building materials and equipment belonging to the contractor or subcontractors aren’t covered by homeowners insurance.

 

Completed operations insurance

 

It’s important the contractors has completed operations insurance, a safety net in case  you discover faulty work after the project is complete at your McCormick Ranch home.

 

In all, home improvement projects invoke many insurance concerns but keeping your insurance company in the loop can remove a lot of the headaches associated with remodeling.  

Comments (1)

Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

These are pretty basic but they make sense and work life balance is more about enjoying the moment ahead of my parents

Oct 12, 2016 03:45 PM