There are a lot of things you usually do before kicking off a home renovation project. Whether you're planning a home addition or want to improve your existing space. There's the whole process of setting a budget, vetting contractors and securing the necessary permits.
But what about homeowners insurance? Does reaching out to your agent even cross your mind as you plan a home improvement project? Because it should.
Why/when should you notify your agent?
Once you have the plans finalized for your renovations it would be a good time to have a conversation with your agent. The first thing to ask about is if your policy has extended replacement coverage. Depending on your policy this gives you an extra 25% to 50% extra dwelling coverage. Not all policies have this as an option but if they do AZ Insurance Team includes it.
Even with this extra coverage the scope of your remodel may extend it. When you speak with your agent they can run the calculations so see how much extra coverage would be needed. Don’t be afraid of making changes since the premium changes are usually minimal.
What if It's a DIY Job?
If you plan on a do-it-yourself project and expect to have friends or family lending a hand, you should also check that your own liability coverage is up to snuff.
While it may be hard to believe, you may still run the risk of a lawsuit if a friend or family member who doesn't live with you is injured while helping out. That's why you should raise the amount of no-fault medical protection on your homeowners policy known as Medical Payments. With this coverage, if someone gets injured, they can directly submit medical bills to your insurance, which may lessen the likelihood of you being sued.
Finally, as with any big project, organization is key. Keep copies of any contracts and receipts for materials purchased for the home renovation project. And take photos before, during and after the remodeling so you have a visual record of all the work.
Taking these quick and easy steps will help insure you and your home are protected as they should be. Having documentation and sufficient homeowners insurance coverage in place that will help protect you against the many perils that even the smallest home renovation project might face.
AZ Insurance Team
*All policies are a little different and this may not be applicable to your insurance policy, talk to your agent to see what your policy covers.*