SMART INSURANCE TIPS
When building or renovating your home, you have an increased exposure to both liability and property loss. It’s important that you understand your risk and make sure you have the right insurance coverage.
Here are a few things to be aware of:
1. If you’re doing a minor, cosmetic renovation, notify your homeowner insurance carrier and make sure they allow for this. Many insurance companies will allow short term renovations taking no longer than 30 – 60 days as long as you’re still living in the home during the work.
2. For a major renovation or a new home from the ground up, notify your homeowner carrier as you may need a separate Builder’s Risk Policy. This covers the structure and theft of building materials and takes the place of your Homeowner Policy until the project is done. The coverage limit should reflect the replacement cost of the home at the end of the project.
3. During any construction project, you have an increased exposure to a liability claim. Anyone injured on the jobsite can sue both the homeowner and the general contractor. Make sure you have adequate primary and excess (umbrella) liability coverage and that your carrier is aware of the construction project.
4. Ask for an insurance certificate from all contractors working on your home. This provides proof that the contractor has both General Liability and Workers Compensation coverage. The certificate should name you as an “Additional Insured.”