A Insurance Update
A home remodeling project can create an exciting new and improved home and even increase your home’s value. However, the process can be daunting and frustrating as your home can be the center of a “war zone” during the process. While you focus on color and design issues, do not forget to consider these items.
Homeowner’s Insurance
If you are increasing the value of your home, you will need to make adjustments to your homeowner’s insurance limits. Typically, your homeowner’s insurance will not cover the contractor or his work. If the contractor causes damage to another part of your home, you will want their insurance to provide restoration.
Review Your Contract or Agreement
Before you hire a contractor make sure you consider the following:
1. Check references
2. Go to Yelp or Angie's List to check reviews
3. Ask the contractor to provide you with a certificate of insurance
4. Address how change orders will work
5. Be specific concerning brands and products you desire
6. Never provide 100% payment upfront
7. All contractors who work on your home should have the following minimum insurance
• Workers’ Compensation to state minimum or statutory
• Commercial General Liability $1,000,000 Combined Single Limit
• Auto Liability $1,000,000 Limit
• Builders Risk which covers the value of the new work
8. Some changes or remodeling projects can help reduce your homeowner’s insurance; for example, upgrading electrical or plumbing. Replacing an older roof can also help your insurance costs.