IMPORTANT INSURANCE TIPS
Due to a number of factors, including skyrocketing lumber prices, the cost to build or renovate a home has increased dramatically over the past year. It’s important that you understand the implications of this before you decide to start a construction project. It’s also critical that you keep your homeowner insurance coverage up to date so your home is well protected. Here are a few tips and things to be aware of:
1. If you’re considering building, be aware that some builders are slowing production in the face of exorbitant costs. Speak with several builders to get a sense of how long your project may take.
2. There may be significant delay in receiving many construction materials. Speak with your architect and builder to find out realistically how long the project may take and factor in extra time.
3. Due to fluctuating costs of materials, some builders may not provide a fixed cost up-front and may prefer a contract based on time and materials.
4. Whether you’re building or not, speak with your insurance broker about the coverage for your home. This is a good time to make sure your dwelling limit is adequate, especially if your policy does not include guaranteed replacement cost coverage.