Many people are foregoing a new home for an upgrade on their existing one. Have you attempted to hire a contractor lately? It is next to impossible. As you consider any home improvement, you will need to adjust your homeowner’s insurance. A new coat of paint will not increase your replacement value, but a new bathroom or kitchen remodel will.
Some risks may be covered under your homeowner’s insurance, but many are not. For example, if you hire a roofer to replace your roof and one of the installers falls, your homeowner’s insurance will not cover the injury. You will need to make sure that the roofer has workers’ compensation coverage. If you hire a friend to help you with your renovation project, your homeowner’s insurance may not cover their medical bills in the event of an accident. If your friend causes damage to your home, he or she could be liable for the damage.
Here are a few tips to keep you protected
- If you “do it yourself”, remember your homeowner’s insurance will not cover your medical bills.
- When hiring a contractor, make sure they have liability and workers’ compensation insurance.
- Check references. Or even better, ask friends for a referral.
- If your home is going to be vacant, you will need to notify your agent.
- Never pay 100% up front.
- Ask the contractors for their bank contacts and list of sub-contractors. Then, verify the contractor’s line of credit with the bank.
- Any work done on a roof must be done per OSHA standards.
- Make sure all work is done to your satisfaction before you write that final check.