Home Improvement: Beyond Homeowners Insurance

If you’re about to renovate your kitchen, finish your basement, add a room to your house, or dig a pool, you have probably been careful about researching excellent, reliable contractors to do the work. Be sure to review your homeowners insurance, too, to understand how changes in your home can change your insurance needs.

According to the Occupational Safety and Health Administration (OSHA), one in five job-related accidents in the U.S. last year were in the construction industry. That’s not counting the accidents that can happen after your renovation or addition has been safely completed. Here are some steps you can take to make sure you’re covered.

• Ask your contractor for a copy of their certificate of insurance. This request is standard and should be easy for them to provide. The contractor’s certificate should indicate their General Liability Insurance, Workers Compensation Insurance, and Property Insurance. Even the best and safest contractors may have accidents, and construction sites are especially vulnerable to weather anomalies and minor mishaps.

• Request the certificate and talk to your insurance agent. Anything your contractor isn’t covered for, you could be responsible for as the property owner. And if you’re doing the work yourself, you will need your own insurance.

Make sure that the General Liability Coverage taken out by you or your contractor protects you against any damage to your neighbors’ property, as well as to your own.

Ask your agent also about Builder’s Risk Insurance to cover possible damage to uninstalled appliances, furniture, and materials.

• Talk to your insurance agent about how your project may decrease your insurance. Are you making changes that make your home safer? If you are replacing old wiring or outdated plumbing, reinforcing or rebuilding a roof, or adding a security system, sprinkler system, or fire alarm, your improvements will make your home safer, and that can result in a discount to your insurance rates. You may want to include one or more of these safety improvements in a project you’ve already envisioned.

• Ask your insurance agent if your changes will increase your insurance. Many home improvements increase the value of your home, and therefore, your homeowners insurance should also increase. You’ve just made your home more valuable, probably increasing its resale value. Certainly, you’ll want that value back if the unthinkable does happen. And your insurance company may have a rule about the percentage of the value of your home that has to be covered.

• Find out if you need additional types of insurance. Adding a swimming pool or adding a deck, especially a second-story deck, could raise your General Liability Insurance. An accident doesn’t have to be your fault or the fault of your contractor to make you liable for damages.

If you’re finishing a basement for use as living space, find out about the risk of flooding, and talk to your insurance company about Flood Insurance. Flood, earthquake, and other disaster insurance are not generally included in a standard homeowners insurance policy.

Making your home your dream house should be a positive experience. If you’re about to start a construction project and are not sure about where you stand with any of these points, call your insurance agent right away.

Or you can contact the Griffin Owens Insurance Group at 703-471-0050 or by using the simple form at Griffin Owens Contact. At Griffin Owens, we have experience in a large variety of business, personal, and financial insurance solutions. We’d be glad to talk with you about preparing for your home improvement project.

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