Home Insurance and Renovations: Common Questions
When you start to plan home renovations, it’s safe
to say that you have a lot on your plate. Between the design process, hiring qualified contractors, the overall
cost of the project, and the possibility of having to temporarily live in
less-than-ideal conditions, it’s likely that insurance is the last thing on
your mind. It’s still important to consider your home insurance and how it can be
impacted throughout your home renovation process. We’ve gathered common questions
people have about their home
insurance and how it relates to their planned
renovations. Continue reading to learn more.
Should I Tell
My Insurance Company About Home Renovations?
The short answer is yes. It’s important to keep
your home insurance company
informed about any renovations or additions you may be making to your home as these
changes can have a major effect on whether or not it is considered “insured to
value.” If the renovations will ultimately increase the value of your home,
you will want to make sure that those changes are reflected on your policy.
Otherwise, you may no longer be fully covered in the event of a loss.
What is Builders
Risk Insurance?
Builders risk insurance, otherwise known as
construction risk insurance, is specifically designed to protect the construction
materials and equipment during a construction or renovation project, should
those items incur a physical
loss or damage. It’s important to know that the
particulars of what is and is not covered will vary between insurance carriers.
Eligible clients for builders risk insurance may take out a policy if they are
constructing from the ground up or undergoing a remodeling
or installation project.
What is “Theft
of Materials” Coverage?
If you’re undergoing a home renovation project, there
is a high chance that you’ve invested a decent amount in supplies
to complete the project. Adding this type of coverage to your home insurance policy
can help protect project materials while they are both in route to your home and
being stored on your property. Having this coverage can help you replace the
materials should they be stolen
or damaged during renovation.
What is A
Dwelling Under Renovation/Construction Policy?
If you are planning to stay elsewhere while renovations are being completed, you will
want to reach out to your agent to discuss a “dwelling under construction”
policy. If you believe your home will be empty for an extended period of time, purchasing
this type of insurance policy can help best protect your home while you are away.
Who Should
I Talk to About my Insurance Options?
There is a lot to consider when renovating your home
and many different insurance options to explore. Take some of the pressure off
yourself by consulting your home insurance agent,
as they will be able to advise you based on your individual situation.
To learn more about a home insurance policy
through NYCM Insurance and the many home
insurance discounts that we
offer, check out the link below!
