February 24th, 2015
Hibernating during the long winter months can cause a lot of homeowners to reconsider their current home layout and start planning some remodeling for when the ice and snow melt away. Right now the market is ripe for a renovation. Think Advisor reports that BuildFax, a leading building permit data source, announced findings which state that residential renovations have been steadily increasing, with projects listed as "substantial" rising by 2.4 percent over the past two years.
Here are some tips for making the most out of any spring time remodeling plans that are on the agenda:
Understand the risks
There are many reasons to purchase insurance specifically for this sort of renovation project. AceGroup pointed out that injuries on the worksite, unreliable contractors, property loss, lawsuits and family safety are just some of the risks that a homeowner may face during the remodeling process. By adequately covering any valuables with the correct form of insurance, it alleviates any unnecessary worrying and ultimately protects your interests during a worst-case scenario. In fact, for some high net worth families, Think Advisor cautions that the price to rebuild their home after a total loss would cost more money than the amount of insurance contractors typically carry.
Consult an insurance agent
Whether it's a cozy house that needs an additional room or it's a fixer-upper that needs significant sweat equity invested in it, before anyone runs away with grandiose plans to transform their home into the Taj Mahal, it's wise to consult an insurance agent to see what these renovations will do to the coverage. Not only can insurance agents double check a contractor's or subcontractor's insurance types, but they can also provide important information on the correct form of insurance to purchase for the project.
Types of insurance for remodeling
There are variety of policies that cover the remodeling process and they range in coverage, based on the size and scope of the project. U.S. News and World report lists several options available to homeowners looking to protect their interests during this chaotic time.
While conventional insurance usually covers simple repairs that take about a month to complete, other more substantial coverage also exists. For instance, the premiums for builder's risk insurance starts off at a relatively inexpensive rate but gradually increase as the property begins to gain more value. Due to accidents which can lead to injuries on the worksite, ensure that all the contractors and subcontractors are covered by the policy as well. By working hand-in-hand with an insurance agent, it pays to take that little bit of time to figure out which option is the best for the project.
Returning to regular insurance
Once the contractors have removed all the tarps and tools, and have driven away into the dusty sunset, it's a good idea to once again compare and contrast any insurance policies to ensure that the remodeled home is properly covered.
CoverHound provides customers with a quick and easy method for shopping around for homeowners insurance.