When you’re planning any kind of renovation project for your home, you want to make sure you are protected to keep your dream home from turning into a nightmare. Here's everything you need to know about construction and renovation insurance.
From the contractor you choose to the limits of your home insurance policy, understanding insurance for construction and renovation is key. Make sure you get renovations that are up to code and not a liability, should anything go wrong.
Before hiring a friend of a friend to do your home renovations, ask to see their insurance documentation and their business number. Using officially licensed contractors is the best way to make sure you’re protected should there be an injury or mishap on the job.
You should let your insurance company know beforehand of any work you plan on having done, to make sure you are still covered during the construction phase. Because renovations can increase the value of your home, they might ask for receipts of the work to prove it has been done (and by a licensed contractor).
You should also know that some insurance policies will be invalidated if you do not occupy the house while it is being renovated. Instead of just staying in a hotel for a few weeks and assuming you are still covered, you should contact your insurance agency to discuss options. Usually, you can request a vacancy permit to cover whatever time you’ll be away, to make sure your home is still protected.
If you live in an older home, bear in mind there’s no way to know what contractors will find once they begin work. Older building materials that are no longer up to code will have to be removed and replaced. This can impact your insurance policy. Again, keep your broker informed of what is happening and work with your insurers to get the coverage you need.
Doing construction and renovation work to your home is another way to make it your own. As your family or needs expand, you might need your house to, as well. But understanding insurance for construction and renovation will help you make sure no matter what changes you make, or whom you choose to make them, you are protected against financial liability.
