Home renovation is in full swing, and while it’s exciting giving your home a new look, it’s important to be insured properly. In this blog post, we talk about what coverage you need for home renovation and some tips for having the entire process go smoothly.
Congrats! It’s time to renovate your home and give it a fresh new look. But before any construction commences, you need to be sure you get the proper insurance coverage. You may not think to call your insurance company or broker to discuss the ramification of your current home policy, keep in mind a standard home insurance policy is for when you are living there without any renovations going on. To cover your property correctly, you will need to purchase a ‘Builders Risk’ policy, also known as ‘course of construction.’ These policies are a specialized form of property insurance which is designed to cover buildings or projects from the time the construction starts until you move back in and, in some cases, for a specified period afterward. This insurance will usually cover build materials, fixtures and appliances all of which are intended to become an integral part of the structure under construction. Why is it a necessity to have? Various things can go wrong, like high winds, things catching on fire or other superior forces. Its function is to provide to the owner the promise that they will have the funds to rebuild in case of loss.
A Builder’s Risk policy is just one part of an overall scheme of insurance coverage. You need to make sure that if anyone is injured on your property, you may be liable for costs and damages relating to that injury.You should also ensure you have a liability policy in place for the construction period.
Do your homework and educate yourself on what you need to cover your property properly during construction. Don’t let the precocity of home renovations cost you more in the end. Be smart and call Bedrock today to discuss how we can give you the proper coverage you need for all future improvements!