Considering a home remodel? If you decide to put on an addition, finish the basement, or transform that loft into a nursery, ensure that the proper insurance is in place before reaching for a hammer. Typical remodel projects require insurance for four aspects of the job:
The house – Don’t wait until after the addition is complete to change your homeowners policy. You’ll want that space insured from damage even before the final touches are added. Before the project starts, contact your insurance agent and increase the value of your home to reflect the impending changes.
The stuff – If you add new furniture or equipment, be sure your personal possessions coverage is still sufficient. Also remember to add these items to your home inventory list.
The contractor – Ask your general contractor to show you a copy of the company’s workers’ compensation insurance. It’s essential that this coverage is in place and sufficient to protect you from having to pay for workers’ injuries yourself.
The subcontractor – Often the contractor will subcontract part of the work, such as electrical or plumbing. Verify whether or not the contractors’ workers’ compensation policy will cover these subcontractors, or whether the subs have insurance of their own.
If anyone completing work on your project is not sufficiently insured, you may be able to extend your own homeowners policy to provide coverage. Check with your agent for the best options, or search for another contractor with insurance that offers the protection you feel is necessary. Better safe than sorry.