For many homeowners, choosing to do a remodel is a big decision. It's usually pretty costly to do, and take a huge amount of time and effort. On the other hand, your home may be much more livable with a renovation, and the value of the home could also increase.
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. With all of the planning people do, they sometimes forget that their home insurance could be affected by this work.
Minor repairs or renovations usually don't affect most home insurance policies, but exceptions may apply so check into that to be sure your coverage is still in full effect. Go over your current home insurance policy with your insurance agent before beginning your renovations. Here are three areas that can leave you without coverage during a renovation:
Before you hire a contractor to complete renovations on your home, be sure that you discuss insurance issues before they begin any work on your home. Liability insurance is important, so request proof that your contractor or subcontractors have this form of protection.
This type of insurance coverage is mainly used as a safeguard against liability caused by injury and damages. Go over the policy to ensure you know when it expires, the limits involved, and the extension of the coverage. It's required by law in most states, but it's still important to check. If an accident does occur on your property during renovations, you will be glad that you are insured as it could be a major issue if you are not.
Keep in mind that you should be clearing the work site of any safety hazards, even if you are covered by insurance. Claims of negligence can result in a lawsuit. Be sure that your contractors are vetted by people you trust before you hire them.
You will need to calculate how much your renovations will add to the value of your home before you start the work. Most homeowners fail to increase their coverage beforehand and leave it without any protection. Be sure that your coverage is adequate during the renovation process and afterwards by going over your policy with your insurance agent.
During renovations, your home could actually be more vulnerable to theft or weather damages. Sometimes a family may be required to stay somewhere else during extensive remodelling, and if this is the case, the basic home insurance policy might not be applicable.
At this time it seems that many insurance companies will not provide protection for more than 30 days if the home is unoccupied for that amount of time. If this is the case in your situation, extra coverage will need to be purchased. 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. During renovations that require you to leave the home vacant, speak to your insurance provider to ensure that you understand how it affects your policy.
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. With all of the planning people do, they sometimes forget that their home insurance could be affected by this work.
Minor repairs or renovations usually don't affect most home insurance policies, but exceptions may apply so check into that to be sure your coverage is still in full effect. Go over your current home insurance policy with your insurance agent before beginning your renovations. Here are three areas that can leave you without coverage during a renovation:
Before you hire a contractor to complete renovations on your home, be sure that you discuss insurance issues before they begin any work on your home. Liability insurance is important, so request proof that your contractor or subcontractors have this form of protection.
This type of insurance coverage is mainly used as a safeguard against liability caused by injury and damages. Go over the policy to ensure you know when it expires, the limits involved, and the extension of the coverage. It's required by law in most states, but it's still important to check. If an accident does occur on your property during renovations, you will be glad that you are insured as it could be a major issue if you are not.
Keep in mind that you should be clearing the work site of any safety hazards, even if you are covered by insurance. Claims of negligence can result in a lawsuit. Be sure that your contractors are vetted by people you trust before you hire them.
You will need to calculate how much your renovations will add to the value of your home before you start the work. Most homeowners fail to increase their coverage beforehand and leave it without any protection. Be sure that your coverage is adequate during the renovation process and afterwards by going over your policy with your insurance agent.
During renovations, your home could actually be more vulnerable to theft or weather damages. Sometimes a family may be required to stay somewhere else during extensive remodelling, and if this is the case, the basic home insurance policy might not be applicable.
At this time it seems that many insurance companies will not provide protection for more than 30 days if the home is unoccupied for that amount of time. If this is the case in your situation, extra coverage will need to be purchased. 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. During renovations that require you to leave the home vacant, speak to your insurance provider to ensure that you understand how it affects your policy.
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