What an adventure! You are finally going to have the house of your dreams! All the work will be worth it once you have your home all completed and designed to your exact wishes and specifications. Remodeling can be the ride of a lifetime—taking your home and creating the sanctuary you have always dreamed of.
Remodeling is also a lot of work, but you knew that already. That is part of the fun—working toward something and creating a beautiful space. Although a lot of work will go into your remodel, it doesn’t have to be a hassle, if you plan ahead.
Along with paint swatches, floor samples, and contractor bids, pick up some information from your Auburn insurance agent as you head into your remodeling adventure. Having a protection plan in place can make the whole process simpler and without all the worry if something goes wrong. Call our team at Resource Insurance Group for a risk free quote that will get you from ‘Before’ to ‘After,’ without all the hassle.
• Hiring a Contractor
• Being your own General Contractor
• D-I-Y Projects
• Completed Remodel
• Some remodels can save you money on your homeowner’s insurance
Hiring a Contractor
For major remodels, hiring a contractor can be the best way to make sure you get the home of your dreams. A good contractor will make sure that the process runs as smoothly and efficiently as possible.
So what do you need to look for in a contractor? It is very important to look at your prospective contractor’s insurance coverage. Look at how his insurance covers his employees or sub-contractors. You need to make sure that his policy will protect all his workers so that you don’t end up being held responsible if someone gets injured on the job (in your home, and under your home insurance policy).
By looking closely at your prospective contractor’s insurance coverage, you are protecting yourself, and that is smart business. Only hire a contractor that is licensed and bonded, asking for documentation of both. The contractor and his insurance company should be glad to provide all the information you need and answer any questions you have. You can also check the Auburn State Labor and Industries website to verify your contractor’s licensing status.
As you look at the insurance policy, you will notice three major areas to consider:
• Worker’s Compensation-This covers any employee or sub-contractor that gets injured on the job site. It will make sure that the worker is covered for medical/rehabilitation expenses and lost wages. Look at the limits on the policy and make sure that they are adequate. If not, you can possibly be sued for the difference.
• General Liability- Covers repair costs if the contractor, through negligence, causes injury or property damage.
• Builder’s Risk- Covers any damage to your home or materials, even if the materials have not been installed.
Being Your Own General Contractor
In some cases, the best and cheapest option is to act as your own General Contractor. As you take on the added responsibility make sure that you have all the insurance coverage that you need to be protected in case something goes wrong.
If you hire any sub-contractors or employees through your remodel, you will need to purchase insurance to cover you if anyone were to get hurt while on the job. Although you may get some coverage through your regular home insurance policy, it may not be enough to cover your assets if you are sued for liability or medical costs.
Although it is not always required by law, you may decide to purchase Worker’s Comp to cover any sub-contractors that you may hire. To learn more about this, contact the Auburn State Department of Labor and Industries.
At the very least, you will want to contact your insurance agent. There are many variables to determine what kind of coverage you need and one of our capable Resource Insurance Group agents can help you know where you can afford to trim and where you should pay for the coverage.
In some cases, it can be financially wise to become your own contractor. Talk to your insurance agent to make sure that you will get the best deal on your remodel and save you all the hassle that can come with managing a big project.
D-I-Y (Do-It-Yourself) Projects
Do-It-Yourself Projects can be a great way to spend the weekend sprucing up your home. A little paint or a simple bathroom renovation can make your home more inviting and enjoyable. They are also fairly simple and require little in the way of management and materials.
The simplicity of the project can be deceiving, however. Most homeowners assume that if something goes wrong, a leaky faucet for instance, than any damages will be covered under their regular homeowner’s insurance policy. This may, or may not be true.
Before you undertake any renovations, simple or complex, it is a good idea to understand thoroughly what is included in your insurance coverage. Most of the time the incident must be accidental or sudden to qualify for your insurance coverage and accidents that occur over time, like a slow leak under the bathroom sink, may not be covered.
Any accident that is caused by faulty workmanship, whether at the hand of a contractor or the home owner, is generally not going to be covered under your homeowner’s insurance policy. That is why it is important to talk to your insurance agent before you undertake any DIY projects to determine if it is worth the risk you would be taking.
So while you can find great satisfaction and enjoyment in fixing up your home yourself, be sure to do your homework and know when it is prudent to hire a contractor who will have specific insurance coverage to protect him in the case of any damage or negligence.
Completed Remodel
After possibly months and months of planning, demolition, rebuilding, and the finishing touches, your remodel is finally complete! You can hardly remember what your home was like before and you couldn’t be happier with the result of all your hard work.
Before you get too comfortable in your new and improved home, call your Resource Insurance Group agent to update your homeowner’s insurance policy. The replacement value of your house may have changed if you have just finished a major remodel and that should be reflected in your insurance policy. Leaving this unchanged can leave you open to real risk in case of an accident. If you purchased new furniture or electronics in you renovation, you will also need to update your personal property coverage.
Can remodels can save you money on your homeowners insurance
Although older homes can be a pain to fix up, it is worth it when you think of all the money that you might be saving on your insurance costs alone. Having updated plumbing, heating or electrical systems are much safer to have in your home and are a lot less risky.
If your major remodel included…
• Plumbing
• Heating
• Electrical
• Putting on a new roof
• A security system
• Or other features that improve the safety of your home...
...give us a call and share the news! You might qualify for a new discount on your homeowner’s insurance policy!