Any cautious homeowner has likely looked into or purchased homeowners insurance. Whether it’s to cover potential natural disasters, loss of items, and your investments. So if you’re considering a remodel, this may be the first place you should look. Without insurance policies covering renovations, premiums would rise incredibly. So now is the time to either consider reassessing your own plan to see what is or isn’t covered prior to considering renovation insurance. Saving yourself from on-the-job damage, injury, and reducing your cost long-term is your greatest asset before you get started.
We get it, it seems overwhelming, but figuring out your plan to stay or become insured can save you the inevitable headache in the future.
- Speak directly with your insurance provider to let them know what the plan is. Have details at hand so that you can get an adequate assessment of what they will and will not cover, and if your project requires more coverage. Knowing about potential budget changes before you’re about to end the project rather than starting ensures that you aren’t just losing money in the end. Another perk from keeping your insurance agent in the loop is that the insurance can cover you if the contractor is not, it’s always best to do what you can to minimize risk at every step of the way.
- Estimate your return on investment with the installations or renovations you’re taking on. Not only does this mean the value of your home will increase, but maintenance and upkeep for new items may as well. If an event happens that results in property damage, have a proper assessment prior to the event happening can help you figure out how much coverage will be offered and how much will be covered out of pocket.
- Return to your homeowners’ insurance policy and ensure that any gaps for newly completed renovations or those in the future are filled by either changing your plan, giving it a second look, or shopping for new insurance plans. But remember, safer is always better than cheaper. If the changes are minimal or smaller companies may be able to ensure you for less, it’s best to not have to change insurance companies every time something new is going to happen in the home!
- Get your permits as soon as possible. Every state has their own requirements for larger scale renovations, so if this is part of your home renovation journey it’s best to acquire all legal forms and document every step of the process. Since the responsibility typically falls on the property owner, it’s best to get one step ahead in the process as soon as you can.
If you can’t remember the last time you read your home insurance policy, you’re one of many who are intimidated by the process. And when money and dreams for your home are at stake, it’s entirely understandable. But if you spend the time to assess your budget, the size of your project, and how it will impact the value of your home, it will save you an incredible amount of hassle playing phone tag with the insurance company.