Tom's Blog
For years, you have thought about remodeling your kitchen or bathrooms, but the expense of it has held you back. But after saving money for years, you are ready to begin that remodel in your home and can’t wait to get started; But hold on before you begin that renovation. BEFORE you do anything, you must contact your local N.C. independent insurance agent to review your insurance policy and anticipated changes in insurance needs for remodeling your home.
Don’t Wait Until it’s Too Late
There is a lot of work involved in planning any home remodel, whether it is an addition, renovation, or a complete transformation, but there are many things you need to tie down before any of the work begins. Statistics show that 1 out of 4 remodel jobs increases the home value by 25% so, while that is favorable, you may be shocked to find if something goes wrong in the remodel process, your coverage may be inadequate if you haven’t increased your insurance coverage to reflect the planned work.
Imagine during the renovation process, your house catches fire and destroys the addition that has begun and all the supplies that have been delivered to your home. If you haven’t increased your coverage to reflect the work, you may suffer financially as you may end up responsible for the deficiency in coverage. Most home insurance policies necessitate you to insure your home for at least 80 percent of its replacement value, so keep this in mind when you plan your renovation/remodel.
Assess Your Workers
Before the work begins, you need to establish who will be coming into your home to perform work. Regardless of whether it is a contractor, sub-contractor, family, or friend, you need to assess the situation and obtain the coverage you need to best protect you and your home.
If you hire a contractor, there are several things you must do before he/she begins any work. First and foremost, ask to see/inspect their proof of contractor’s liability insurance as well as workers compensation insurance. Without workers compensation insurance, you run the risk of being sued for injuries should the contractor or one of their employees suffer injuries while performing work at your home. Contractor’s liability insurance covers the contractor for any damages to your property during the construction. If they are reputable, they will have this “certificate of coverage,” so don’t take their word for it; visually inspect it! The certificate of insurance should outline the effective dates of coverage and if you feel more comfortable, you can even call the carrier for confirmation of insurance.
If your contractor brings in other workers to do specialty work (examples would include plumbers, electricians, or drywall experts) these would be considered sub-contractors and they should also have a certificate of coverage for workers compensation that should be individually inspected and verified.
If you hire a friend or neighbor to assist you in the remodel, then your N.C. homeowners insurance will cover any medical bills incurred; however, you may wish to purchase a N.C. personal umbrella policy that would provide added protection above and beyond your standard N.C. homeowners insurance policy.
Keep Your N.C. Independent Agent Informed
Keeping your N.C. independent insurance agent informed before, during, and after the remodel process will ensure the adequate insurance coverage you need. We can assist you during this process to determine the level of coverage you need and we can adjust your coverage limits accordingly should plans change. We are here for you to ensure it all runs smoothly. Contact us TODAY at 866-869-3335 with all of your remodel insurance needs.
