You’re about to undertake a kitchen modernization, a bathroom renovation, or a basement makeover to create a comfy rec room. Or perhaps you’ll be even more ambitious and add another 500 feet to your square footage with a gorgeous new wing.
But what will happen if it rains while your roof is open to the sky? Will your homeowners insurance cover renovation mishaps?
Whatever your plans, one of the key home renovation tips is to talk with your homeowners policy agent first. Your agent might suggest home renovation coverage as a low-cost homeowners policy add-on.
This type of add-on will help protect you financially in case of a mishap during renovations. Home renovation insurance can help you make up the difference and feel even more financially secure.
Understanding Home Renovation Insurance
You’re about to further beautify your Georgia home and almost certainly increase its value (more on that later). A little pre-planning with your homeowners policy agent can go far toward your peace of mind.
This can be a particularly important add-on when you’re about to pick up a hammer and circular saw and undertake a DIY home renovation project.
What could go wrong?
Plenty. First — and most importantly — your foundation could collapse if you work in your basement and create excessive hydrostatic pressure. That coverage benefit alone is worth the very modest additional premium you’ll pay on your homeowners policy (perhaps as little as $50 a month while your project is underway).
Home renovation insurance also covers theft of your perhaps very expensive tools and building materials. Consider, for instance, that it’s an outdoor addition, such as a patio or gazebo. You’ve got tall stacks of plywood, which you’d put under tarps if that rainstorm didn’t take you by surprise.
Or you’ve got a van full of tools that you retrieve a few at a time. Then, on your next trip to your mobile toolbox, you immediately see that your expensive band saw is missing. It will go for a bundle on some online used tool marketplace.
Your upgraded plan might also give you additional liability protection if visitors are injured in your renovation workspace.
In short, the purpose of home renovation insurance is to fill in the possible holes in your standard homeowners insurance policy. That’s so your claims won’t be denied when you take on a house renovation project, whether professional or DIY. When you think of the thousands of dollars you might spend on tools and materials for your ambitious plans, the little you’ll spend on this policy add-on feels like pennies.
How Home Innovations Affect Your Homeowners Insurance
As stated earlier, your renovation is probably good news when it comes to the value of your house — as long as you also follow a home maintenance checklist to keep up on repairs. If you gave yourself an extra bathroom, a sleek, modern kitchen, or a home office, you’ve made your future real estate agent very happy.
Keep in mind that you’ve also changed the profile of your home. Let your homeowners policy agent know so you can get full value if you ever need to make a claim. For instance, if you leave burners on and a fire destroys the state-of-the-art built-in appliances that were part of your kitchen modernization, you can’t get full value for them if your agent doesn’t even know you’ve modernized the space.
You have even more to lose if you don’t tell your agent that you no longer have a 2,500-square-foot Georgia home. It’s now 3,000 feet, and you’ve lost a lot more if it’s damaged or destroyed by fire, a burst water pipe, or a covered natural disaster.
You might pay a little more after you’ve upgraded the value of your house, but your investment is well worth the slight increase.
Key Benefits of Updating Your Insurance Before Renovating
It all boils down to one giant benefit: peace of mind. If all possible accidents and calamities are covered, you’ll sleep better at night — and feel better about tackling your house renovation project.
You can realize that and other benefits by chatting with your homeowners policy agent. Explain exactly what you intend to do, and review your existing policy. Ask about house renovation insurance. Let your agent crunch the numbers and compare various cost options.
While you have the expert’s attention, ask about other home renovation do’s and don’ts before you pound a single nail.
Tips for Choosing the Right Home Renovation Insurance Policy
Don’t choose the first option put in front of you. Read it. Ask questions. See exactly what your policy add-on covers — and doesn’t.
Comparing and contrasting policy rates and benefits can be made a whole lot easier if you work with an independent homeowners policy agent.
Many agents work for a single insurance carrier and can only offer you the coverage their company provides. Independent agents, on the other hand, have secured the right to represent the products of multiple insurers. They can bring you options at various price points and with the benefits that are most relevant to your needs.
Home renovation insurance policies might be hard to compare. However, the right policy might even have a few lesser-known benefits of this coverage that can make all the difference.
That’s why you ask questions and let your agent show you what you’ll pay under various scenarios and exactly what you’ll get. Your agent can also offer suggestions to help you save money on your standard homeowners coverage.
The Role of Professionals in Your Renovation and Insurance Plan
You’ve learned about the possible need for additional coverage for your planned DIY renovation project. But what about if you’re hiring a professional contractor who’ll bring in their own crew?
First, make sure they’re bonded. That means your contractor team has its own insurance, and you won’t have to pay for their injuries, tool or material losses, or damage they might cause to your home.
In this case, your homeowners policy should be adequate, and you probably won’t need a home renovation insurance add-on. But it’s still important to first have a chat with your agent, explain your plans, and make sure you don’t come up short in financial protection.