Thinking about starting a kitchen remodel or adding a new deck? Before you pick up a sledgehammer, Mutual Insurance Partners in Follansbee, WV, wants you to understand how your home insurance works during renovation projects.
Coverage During Active Construction
Your standard homeowners policy usually provides coverage for minor renovations, but major projects may require an update to your policy. Many insurers classify renovations that increase your home’s value by more than 10 percent as significant changes that must be reported. If you are adding square footage or completely remodeling a room, you must notify your insurance company. Coverage for the structure under construction may be limited, and accidents involving contractors could affect your liability protection.
Failing to update your insurer could leave coverage gaps if damage occurs during the project. Keeping your agent informed ensures your policy stays accurate throughout the renovation.
Protecting Against Contractor-Related Issues
Always confirm that your contractors carry proper insurance before work begins. Their liability coverage should protect you if they accidentally damage your home or if someone is injured on the job site. However, contractor insurance does not cover everything. Tools, materials, and equipment left on-site overnight may not be protected under either policy, leaving you responsible for theft or damage.
Requesting proof of insurance and verifying coverage limits are important steps to protect your home during construction.
Updating Your Coverage Post-Renovation
When your renovation is complete, contact your insurance agent right away. Improvements often increase your home’s replacement value, which means your coverage limits may need to be adjusted. Updates such as new roofing or electrical systems may qualify you for discounts, while additions like pools or hot tubs require extra liability protection.
Updating your policy ensures that your new investment is fully protected moving forward.
Moving Forward With Your Project
Smart renovation planning includes reviewing your insurance needs before work begins. Contact Mutual Insurance Partners in Follansbee, WV, to review your homeowners policy and make sure you are protected throughout the entire renovation process.
