Building or Renovating - Your Insurance Needs
- Author Laura Ginn
- Published April 16, 2013
- Word count 615
It seems that there is a building and renovating boom taking place lately, with new homeowners designing custom plans to build, or long-time homeowners finally taking the plunge and making much needed changes to their existing homes. With all of this building going on, it’s easy to start wondering if those homeowners are as protected as they think they are, from an insurance and financial standpoint. There are unique insurance challenges when it comes to construction of any kind, be it from the ground up or just minor renovations. If you’re planning to build a home, or just remodel one, there are some insurance tips you need to be aware of.
If you are in the group of those who are planning to build their own custom homes, there are a couple of questions to start with when deciding on your insurance needs. First, do you own the property on which the house will be built? If the answer is yes, it is in your best interest to obtain basic liability coverage while the home is under construction. As the owner of the property, you will be partially responsible for any accidents which may occur on the site, such as if a child is walking through the unfinished home and is injured. If you do not own the land on which the home is being built, but will take possession of it after building is complete, there is no need to worry about liability.
Second, will you own the home while it is under construction, or will it be in the name of the contractor who is building it? Again, if the contractor will be the owner during construction, there is no need for additional insurance. However, if you will be the homeowner during construction, you will need to look into builder’s risk insurance as well as a fire and dwelling policy. Builder’s risk insurance is invaluable during construction, as it covers the theft of building materials, from copper wire to stainless steel dishwashers. Fire and dwelling policies, on the other hand, provide no protection against theft, but covers damage to the physical property during construction. Of course, smart home builders will also check to make certain that their contractor is fully insured, even if it means doubling up on policies.
If you are part of the growing trend of home renovations, you are, of course, not exempt from additional insurance. Though you most likely have homeowner’s insurance, it is almost a guarantee that your policy does not cover renovations, nor will your agent be willing to add renovation insurance to your existing coverage. It will be in your best interest to purchase additional insurance to get you and your home through renovations. Builder’s risk policies, as mentioned above, are great for renovations, as well. These policies will protect your home under renovation, as well as the construction materials which will almost surely be left unsecured at some point.
If you are planning major renovations, in which interior walls or floors will be exposed, you may want to talk to your insurance agent about temporarily switching your homeowner’s insurance to a home under construction policy. Normally used by contractors, these policies will protect your existing home as though it were a new home being built. And for major changes, there really is no better way to protect your assets.
When building or renovating your dream home, insurance may be the very last thing on your list of worries. But when push comes to shove, being protected with proper insurance policies can be the only way to make certain your dream home doesn’t turn in to a nightmare.
Laura is a blogger who is very interested in topics related to how to get cheap home insurance. She enjoys helping people find the best deals out there and educating them on insurance related topics.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- Unlocking Inner Beauty: The Science of Stronger Hair, Radiant Skin, and Resilient Nails.
- The Secret to Silky Skin: Modern Hair Removal Solutions Explained.
- Wildly Elegant: Why Antelope Carpet Is the Ultimate Patterned Carpet for Luxury Homes
- Automatic Driving Lessons in Glasgow: Your Top FAQs Answered by Autogear Experts
- FAQ Guide: Everything Caledon Homeowners Should Know About Choosing Lighting from Fehmi Lights
- The Evolution of Compact Cinema Cameras: From Studio Rigs to Agile Setups
- Smooth Confidence: The Ultimate Guide to Effective Hair Removal.
- The Natural Path to Stronger Hair, Glowing Skin, and Healthier Nails.
- Smooth Skin Ahead: How to Remove Skin Tags Safely and Naturally.
- Smooth Skin Ahead: Natural Paths to Reducing the Appearance of Scars.
- The Art of Carved Doors: From Rustic Charm to Modern Elegance
- The Pediroller: A Simple Tool with a Profound Impact on Foot Health
- Fading Scars Naturally: How to Restore Smoother, Even-Toned Skin.
- Say Goodbye to Skin Tags Naturally: A Complete Guide to Gentle Removal.
- Refresh Your Home with the Carefree Spirit of Boho Decor
- The Charm of Modern Farmhouse Décor
- Luxury That Lasts: Why Happy Feet Flooring Is a Smart Investment
- The Real Reason Bamboo Pajamas Cost More—And Why GYS Makes Them Worth Every Penny
- Mastering Camera Support: How Precision Fluid Heads Transform Cinematic Movement
- Color Reproduction and Skin Tones — The Real Challenge for Modern Cinema Lenses
- The Use of Electric Callus Removers: A Modern Approach to Foot Care
- Clearer Skin Naturally: The Complete Guide to Safe and Effective Skin Tag Removal.
- Fading Scars Naturally: How to Restore Smoother, Even-Toned Skin.
- Varicose Veins Demystified: From Early Warning Signs to Proven Relief.
- Clearer Days Ahead: How to Effectively Treat and Manage Rosacea Symptoms.
- The Death of Expertise: Navigating the Political Landscape
- Hospitality Meets Worship: Church Carpet That Welcomes
- Using Toe Straighteners to Help Foot Problems
- Emerging technologies shaping the future of digital
- Do Magnetic Eyelashes Actually Work?