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Remodeling Your House? Our Insurance Tips

by | Feb 10, 2022

So, you’ve been binge-watching every episode of Joanna Gaines’s home makeover show, and now you’re thinking, “Hey, I could do that!” Who wouldn’t want to transform their home into a magazine-worthy oasis? Well, hold onto your sledgehammer for a moment because, before you go all DIY superstar, there’s one crucial thing to consider: insurance. But don’t worry; we’re here to guide you through the ins and outs of insurance concerns related to remodeling. After all, we want your home improvement journey to be as smooth and stress-free as possible!

Understanding Your Homeowners 

Insurance Coverage Your standard homeowner’s insurance policy may provide some coverage during a remodel, but it could be limited. Discuss your plans with your insurance agent to ensure you have adequate coverage for your specific project. They can help determine if additional coverage, such as a builders’ risk policy, is necessary.

Common Insurance Mistakes to Avoid 

When remodeling your home, avoiding common insurance mistakes can save you time and money. Some pitfalls include:

  • Not updating your insurance policy to reflect your home’s increased value after the remodel
  • Failing to verify your contractor’s insurance coverage
  • Forgetting to obtain the necessary permits for your project

Hiring a Contractor vs. DIY Remodel 

Deciding whether to hire a contractor or tackle the remodel yourself? Both options have their pros and cons. Hiring a contractor can save you time and stress, but it’s crucial to ensure they have proper insurance coverage, including:

  • Workers Compensation: Covers workers injured on the job
  • General Liability: Covers injury or property damage the contractor may cause
  • Builders Risk: Covers damage to your home and materials, including those not yet installed

On the other hand, DIY remodeling can be a fun and rewarding experience but comes with risks and insurance implications. We’ll dive into these considerations in this section.

Verifying Contractor Credentials and Insurance 

If you hire a contractor, verify their credentials and insurance coverage. Ask for proof, called a certificate of insurance, and request that it be sent directly from their agent. This way, you can be confident that it’s legitimate. A trustworthy contractor will be more than happy to provide this information.

DIY Remodel: Ensuring Proper Permits and Coverage Going the DIY route? 

Before starting:

  1. Check with your city or county to ensure you have the proper permits.
  2. Consult your insurance agent to determine the right coverage for your project.
  3. Remember, a DIY remodel means you’re solely responsible for the work, so it’s essential to be adequately protected.

Updating Your Homeowners Policy After the Remodel 

Once your remodel is complete, it’s time to revisit your homeowner’s insurance policy. You may need to adjust your coverage limits based on the new materials, furniture, and valuables added to your home during the project. Make sure to inform your insurance agent about the completed updates, so they can help you adjust your policy accordingly.

Remodels That Could Save You Money on Insurance 

Did you know that specific updates might save money on your homeowner’s insurance? Upgrades like new plumbing, heating, electrical systems, a new roof, security systems, or other safety features could lead to discounts on your policy. It’s worth discussing these potential savings with your insurance agent!

Real-Life Stories: 

The Importance of Proper Insurance During a Remodel These stories illustrate the importance of having the right insurance coverage during your home remodel, whether hiring a contractor or going the DIY route:

Sarah’s Story: Sarah hired a contractor to renovate her kitchen, but the contractor accidentally damaged a water pipe, causing extensive water damage to her home. Luckily, Sarah had verified that her contractor had General Liability insurance, which covered the cost of the repairs.

  • John’s Story: John decided to tackle a bathroom remodel himself. While working on the project, he discovered hidden water damage and mold. Because he had discussed his DIY project with his insurance agent beforehand, John was prepared with the proper coverage to handle the unexpected issue.
  • Lisa’s Story: Lisa and her husband remodeled their beautiful backyard, including a new deck and landscaping. After the project, they remembered to update their homeowner’s insurance policy, ensuring their increased property value was adequately covered.

These stories emphasize the value of proper insurance during a remodel and the importance of working with your trusted insurance experts at Page Insurance.

We’re Here to Help!

Well, We wish you all the best in your remodel! Joanna and Chip make it look easy… Whatever the case, following this guide and consulting with your trusted insurance experts at Page Insurance, you can focus on creating your dream home while being confident that you’re adequately protected. Remember, the team at Page Insurance is always here to help you navigate the complexities of insurance coverage during a remodel. So, reach out to us with any questions or concerns. Happy remodeling!

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John Page, President of Page Insurance, has been a driving force in the insurance industry since 1998. As a licensed agent in Property & Casualty, Life, and Health insurance, John has won numerous awards for agency management and works tirelessly to improve agency operations with the client in mind. He is passionate about building and investing in the Page team of experts, ensuring they deliver top-notch service to clients. In his free time, John enjoys snowmobiling, gaming, reading, traveling with his wife and three kids, and cheering on the local Idaho Falls hockey team.