The year 2012 is predicted to have a higher number of homeowners that will remodel their homes. According to research conducted by Harvard University, there will be a 5.9% increase in the amount of money being spent on home renovations.  Unfortunately, a lot of property owners don’t check in with their house insurance companies beforehand. The reason you should get in touch with your home insurer is because you may need to add additional insurance during the process of the renovation and afterward. Your insurance needs are likely to change once your home’s interior and exterior have been remodeled.

Make Sure You’re Adequately Insured

By first contacting your home insurance provider, you will be able to get insight about whether you need to have additional coverage for your remodeling project. Too many homeowners wait until after the home renovation has been completed, only to find out that they are dangerously underinsured.

It’s advised that you first speak with a representative at the insurance company that you are insured with and let them know your plans. They will inform you of whether or not you need to update your current insurance policy to protect you financially during the course of your renovation project. If you’re looking to do a small renovation yourself, make sure that you are qualified to do so. Then if family and friends will be helping you, ensure that you have sufficient liability protection in case someone gets hurt. It may be a good idea to raise the amount of your no-fault medical protection as well. This will allow the injured persons to submit their doctor’s bill to your insurance company and it will minimize the risks of you getting sued. For bigger projects, you can get a builder’s risk policy, which is usually available as an add-on or a stand-alone policy.

Make Sure the Contractor is Insured

On the other hand, if you’re planning to hire a contractor, you will need to make sure that they are insured. Check to make sure that he or she has a commercial business/general liability insurance policy along with workers compensation. Contractors that are unwilling to verify their insurance coverage, you should avoid hiring. home remodeling insurance

Another tip is to keep records and save all the receipts for everything your purchase.

Update Your Insurance Coverage

Once your home renovation has been completed, you should update your insurance coverage. Let your insurer know about what improvements that have been made to your property. You may be required to increase the amount of your insurance coverage, depending on how major your renovation was. If you purchase a lot of items, such as art and other expensive décor, you should look into getting more coverage for personal possessions. An excess or umbrella liability policy could be an affordable way to add liability protection for new swimming pools or hot tubs that have been added. These can be a danger zone for lawsuits.

By upgrading your home with safety items, such as burglar alarms and smoke detectors, you can receive discounts. Ask your insurance company about the discounts they offer and try implementing them into your home remodel, so that you can save more money.

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