Building a home that is perfect for you and your family is always a huge task. Your home is not just your place of residence but your personal heaven. So, it is important that it matches perfectly with your style and personality. But, there are chances where your dream home is not built exactly the way you want or going out of style leading it to renovations or remodeling.
Apart from the fact that it is time-consuming and an additional expense out of your pocket, there are a lot of other factors that are to be considered when it comes to remodeling. One of the most important factors is your home insurance. Most people are not aware of the fact that your home insurance does cover your remodeling too.
Read further to know about the things to be considered regarding your home insurance before you start remodeling your house.
Ring up your Home Insurance Manager:
If you already have a home insurance policy in place, the first task to be done is to consult your home insurance manager. They are the best person to advise you on what should be done. Go through your insurance policy terms with your manager and get to know the terms for coverage for your remodeling. If your current home insurance does not cover it – you can upgrade the policy or apply for a new policy and manage both the policies simultaneously.
Also, if the house is remodeled, the property value increases which can alter your home insurance policy. Further to this, your insurance policy terms might differ if there’s a home loan involved.
The extent of Coverage:
There are certain factors that are to be checked, if your existing policy covers the cost of the remodeling. The most important factor is the extent of coverage in the policy terms i.e., whether it covers the cost of personnel involved, the cost of temporary accommodations until the renovation is complete, etc. So, it is advisable to consult with your manager and review your terms. Also, it is better to know the policy cover in case of a mishap during the construction, physical injury or third-party property damage and other liabilities involved.
Contractor for the Renovation:
After you get a go-ahead from your insurance manager, the next step is to hire the contractor for the remodeling project. There are a lot of agencies that are involved in the remodeling business. Here are few things to be taken into consideration before hiring a contractor:
1. Contractor’s License: Check for the license of the contractor and see if it is up to date and authentic.
2. Liabilities Involved: Check the liability policy of the contractor to make sure that your policy provides complete coverage and protects you against liability for property damage, during the course of the renovation.
3. Compensation Policies: If any of the personnel or the sub-contractor gets injured during the remodeling, make sure your policy covers the medical expenses and the wages of the labor involved.
4. Builder’s Risk: There are chances for things to go wrong during the course of renovation like the material damage involved in the renovation (whether installed or not), or property damage. Ensure your renovation policy covers the expenses incurred.
These are some of the important factors that are to be taken into consideration before remodeling a house. Although home insurance provides extensive coverage for the homeowners, it is better for you to be involved in all the proceedings of the renovation, especially the purchase of the insurance policy and the builder’s risk policy to ensure nothing goes wrong and to get a sense of all of it.