When you decide to take on a remodeling project, you may spend considerable time planning your remodel, getting estimates from various home improvement contractors, deciding whether to do it yourself and hire people for smaller jobs, and pricing out how to pay for the remodeling. You might even turn to a home equity loan or another type of loan to pay for the home remodeling project. What you might not realize is that you most likely need some sort of homeowners insurance to cover your premises during remodeling. Home improvement contractors carry contractor insurance that protects them in case of problems on the job or faulty work. But what happens to you if you invite friends over to help with roofing and someone gets hurt? Or if a fire destroys your home and a friend's tools worth $5,000 are destroyed as well? You need to have special homeowners insurance to do remodeling work, and in this article you will learn how to cover yourself in case of complications.
Things You'll Need
- Estimate for remodeling work
- Homeowners insurance policy
Find a home improvement contractor to do the remodeling work. Make sure that the home improvement contractor is licensed; check with your state's licensing board. If you will do the work yourself, go to Step 2.
Budget money and time for "DIY" work. Are you certain you can handle the work and the time? Are there remodeling segments that require a professional to meet code? If so, schedule those contractors now.
Call your homeowners insurance provider and talk with your agent. Explain the remodeling project, and ask about coverage. Ask if there is a difference between DIY and hiring a contractor, or hiring a small contractor versus a large corporation. Ask whether there will be a deductible if a claim must be filed, and if so, whether you can adjust the deductible amount. You should also inquire whether your home insurance premiums will increase and for how long. Once the work is done, do the premiums go back down? Is the remodeling project going to improve parts of the house in such a way that the overall homeowners insurance cost will decline--or increase? These are critical questions to ask.
Request a copy of the rider that will go on your homeowners insurance. Read it carefully.
Call your agent with any changes you wish to make to the rider that covers remodeling.
Begin the remodeling work. Explain any specific issues in your remodeling insurance that your contractors should know. Some types of work are not covered by homeowners insurance; make sure the home improvement contractor is insured for these aspects of the work.