You may be looking for ways to improve your home in the near future. Perhaps you want to upgrade your heating system, replace a leaky roof, or add on that sunroom you have always wanted. Before you get started however, you will want to know how that remodeling project can affect your insurance needs.
Update Your Homeowners Insurance
Whether you are updating your kitchen or adding on another room, a remodeling project will likely add value to your home. As a result, you will want to check the property coverage limits on your homeowner’s policy to make sure that they reflect any changes you make to your home, no matter how small or large the improvements may be.
If you hire someone to do the remodeling, you will want to make sure that he or she is properly insured. Any contractor that you hire should have a certificate of coverage for both workers’ compensation and contractor’s liability insurance.
Require Your Contractor to Have Insurance
Workers’ compensation coverage protects you from liability claims that can result from a contractor (or his or her employees) getting hurt on the job. Contractor’s liability insurance provides coverage for damage to your property caused by the contractor during remodeling.
If you hire a general contractor who is planning to hand off some of the work to a subcontractor (or if you plan to act as a general contractor yourself), you will also want to get a copy of the subcontractor’s proof of insurance.
Before jumping into a home improvement project, make sure that you are prepared in case an accident occurs. If someone helping you on a remodeling project is hurt, his or her injuries could be covered under the liability portion of your homeowner’s policy. You may also want to look into a personal umbrella liability policy, which provides coverage beyond your regular homeowners insurance and is especially important if you have significant assets that you need to protect. It is imported to check with us to make sure you are covered correctly.
At Vaught Wright & Bond, our Personal Insurance specialists work with you to tailor an insurance program to protect your family, home, auto, and other valuable possessions at the most reasonable costs our carriers can provide.