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If you plan to
remodel your home, make sure that the house, the contractor and the
subcontractors have adequate insurance coverage.
Don’t make the mistake of waiting until an addition or extra room is
completed to increase the insurance coverage on the structure of your
home. If the new addition is destroyed or damaged before insurance
coverage has been increased, you may be responsible for the cost of
repairing or rebuilding the addition.
Contact your insurance agent or representative before—or shortly
after—construction begins in order to increase the insurance coverage on
your house to an amount that reflects the higher value of the rebuilt
structure.
When hiring a general contractor, find out if the contractor has workers
compensation and ask to see a copy of the policy. Workers compensation
pays for medical and rehabilitation expenses and covers lost wages if
the workers sustain injuries on the job. Injured workers may sue you if
the contractor does not have proper insurance.
In most home improvement projects, the contractor subcontracts the
builders, electricians and plumbers. The workers hired may not be
full-time employees of the contractor and therefore not covered under
the contractor's workers compensation policy. While some independent
builders, electricians and plumbers may carry their own workers
compensation coverage, others may not.
You should verify the insurance coverage of the contractor and the
subcontractors. If the coverage is insufficient, you may need to fill in
the gaps by extending the limits of the liability portion of your
homeowners policy.
If you purchase additional items, such as furniture, exercise equipment
or electronics, you may need to increase the amount of insurance you
have on your personal possessions. Keep receipts and add them to your
home inventory. |
