Renovation Insurance: Planning on starting home renovations? Make sure you insure your projects!

Renovation Insurance

Renovation Insurance

After buying a new house, you may want to embark on a period of renovation in order to improve some old structures or simply to modify your house to you own image. Several renovations may also take place throughout the years after buying your house. Generally, these renovations will allow the house to appreciate in value, but the renovations could also bring about some risks, therefore it is essential to take measures to insure your projects before you start.

Here are some tips on what you can do to place every possible chance on your side and avoid nasty surprises (Based on Tamara Holmes article Insuring Home-Improvement Success).

1)      Contact your insurer: Major renovations can leave your home exposed, physically and financially, therefore, we strongly recommend you adjust insurance coverage temporarily, just in case there’s an accident due to elements not covered under a regular homeowner’s policy.

2)      Find an insured contractor: That way, if unluckily something goes wrong (the contractor destroys something or a worker is injured for example) you’re protected. Make sure you see the certificate of insurance of the contractor to avoid unpleasant surprises in case something happens.

3)      Get building permits: If you plan changing the structure of your house, you should first verify with your city government if you must have building permits for your project.

4)      Estimate the project’s worth: any big investment into the value of your home (experts talk about $25 000 and more) should be reported to your insurance company.

5)      Review your policy: Once the renovation project is completed, talk to your insurer and make sure you determine together how much value the work has added to your house. You will want your policy to reflect the new, upgraded value of your home!

Also, in order to help you pay for your renovations, we recomend you take a look at the different home improvement assistance programs available.