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
- 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?
- Why Bamboo Pajamas Are Worth It: Comfort, Health, and Sustainability with GYS
- Use of podiatry felt to treat foot problems
- Soothe the Red: Proven Treatments and Everyday Solutions for Rosacea Relief.
- Breaking Free from Heavy Legs: A Complete Guide to Varicose Veins.
- Automatic Driving Lessons in Glasgow: Your Top Questions Answered
- How Carpet Runners and Wool Rugs Transform Stairs, Halls, and Rooms
- When Detail Becomes the Story: Macro Lenses in Narrative and Commercial Filmmaking
- 10 Simple Ways To Make Your Office More Secure
- Veins Under Pressure: Understanding, Preventing, and Treating Varicose Veins
- Calm the Flame: Natural and Effective Ways to Treat Rosacea Symptoms.
- The Hidden Price Tag: How Employee Turnover Drains Your Bottom Line
- Buying a Home When the Interest Rates Drop
- From Sheep to Chic: The Style Power of New Zealand Wool Carpet
- The Healing Blueprint: How to Activate Your Body’s Innate Power to Recover Naturally.
- Turmeric Uncovered: Nature’s Golden Remedy for Modern Wellness
- Turmeric’s Timeless Secret: A Golden Path to Better Health.
- Healing in Harmony: Unlocking the Secrets to Your Body’s Self-Renewal.
- The Bohemian Skirt: A Timeless Wardrobe Essential
- Ganesh Chaturthi: A Modern Take on Tradition Through Carved Wall Panels and Spiritual Wellness
- Revitalize from Within: Simple Strategies to Boost Your Body’s Natural Healing.
- Golden Power: Unlocking the Healing Benefits of Turmeric.
- From Chandeliers to LEDs: Fehmi Lights’ Expert Answers to Brampton’s Most Asked Lighting Questions
- West Texas Desert Retreat: Eclectic Outdoor Living Spaces & Vintage Tables