How Do I Get Homeowners Insurance When My Home Is Being Renovated?
Homeowners insurance is required on most properties that carry a mortgage. Most homeowners insurance policies consist of dwelling coverage (the home itself), replacement cost, personal injury and personal property. If you are undergoing repairs or renovations on your home, however, you need to update your coverage before the job is completed.
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Instructions
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Review your current homeowners insurance policy. Look carefully at the dwelling coverage. This is the amount that covers a serious accident or disaster such as a fire, and is usually based on an appraisal of your home. Examine your replacement coverage. This represents the percentage of the dwelling that is covered.
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Meet with your insurance agent and add a vacancy clause to your policy coverage. This will protect you if your unoccupied home is damaged while under construction. Most policies without this clause allow homeowners to be away from their properties for only 30 or 60 days.
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Decide whether or not to add builder's risk insurance to your policy. This additional protection will cover any furniture, carpeting, appliances and other personal possessions if they're damaged due to exposure. Large remodeling jobs often include opening walls, roofs and windows for an extended period of time. Check first to see if your contractor carries this insurance.
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Bring any contractor estimates to your insurance agent, especially if you are undergoing major repairs. Home renovations will increase the value of your home so you must increase your dwelling coverage. Do this prior to beginning your repairs in case a major accident occurs during construction.
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Work with your agent to increase your dwelling coverage. Consider increasing the replacement coverage--to at least 100 percent replacement--and your personal injury coverage if you will be doing any work yourself.
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Confirm all insurance changes with your agent. Make sure to show her the contractor's certificate of insurance. Do not start repairs until she is in agreement with your insurance upgrades; you want to be protected while your home is being remodeled.
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References
- Photo Credit Hard working construction worker at a construction scene. image by Andy Dean from Fotolia.com
