So, you decided to fix up your home little renovation project such as replacing carpets or maybe painting a bedroom. Where you are adding a new room or simply fixing up an old one, it’s a big step for most homeowners, and it frequently does not go as well as it should, which is one of the reasons why you need to ensure you have adequate homeowner’s insurance before you start your renovation project.
Nothing Goes as Smoothly as You Would Like
Whether you hire a contractor to do the work or you do it yourself, renovations can quickly become more than you bargained for. For the lucky ones it simply means going over the timeline for others it can mean significant expenses that were not planned for such as damage or injury to someone who is working on your house. Depending on the type of homeowner’s insurance you have your home should be covered for things like fire, flood, theft, and many other types of damage that could occur to it. However, the chances are good that your homeowner’s insurance does not cover any area that you are currently working on. Before you start your next remodeling project, you should always contact your insurance agent to ensure you have adequate insurance coverage in case something goes wrong.
Talking to your insurance agent is the best way to find out if your renovation project will be covered under your current policy. Unfortunately, there are no standards for this when it comes to insurance coverage. Whether you are covered or not is determined solely on the coverages included in your insurance policy, something your agent can go over with you. Your insurance agent can also tell you if you need extra coverage is during reconstruction phase or if certain things will not be covered if you’re not at home such as theft. Many of the simple projects you take on such as tiling the kitchen floor may not require changes to your policy, but major projects such as adding a new room will definitely require additional coverage. Only your agent will be able to give you the details on what needs to be changed and what doesn’t.
Does Your Insurance Cover Damage Caused by a Contractor?
One of the biggest mistakes you can make is thinking that your contractor has the insurance to cover any damage or that your homeowner’s insurance covers any damage the contractor may do during the renovation process. What might start out to be a simple project could easily turn into a nightmare if the contractor does not have insurance or is not licensed to do the work. Chances are good if you hired an unlicensed contractor they do not have insurance and your insurance may not cover any damage they cause or if one of their employees becomes injured on the job. For example, you have a friend of a friend replace your roots only to find out that six months later your roof is leaking worse than it was before the renovations. Again, because you hired a contractor who is not licensed, you are probably going to be the one who is on the hook for the repair bills. This is something you should discuss with your insurance company before you hire anyone to do the work.
At this point, your only option would be to sue the person who did the work, and since they are an unlicensed contractor, they probably don’t have the money to pay you. You should always be sure any contractor you hire is fully licensed insured and bonded Just in case something goes wrong. Never hire a contractor unless they can provide you with proof that they have the right type of insurance and always ensure you have adequate homeowners’ insurance to cover any other risks.