Updating the kitchen, expanding a master bath, or building an addition can make you fall in love with your house all over again. A successful home remodeling project can also boost your property value by several thousand dollars, which is great news if you plan to sell someday. However, it might also mean adjusting your homeowner’s insurance policy and taking steps to protect yourself against liability claims.

How Home Remodeling Affects Your Insurance Coverage

Check the Contractor’s Insurance

Before work begins, make sure your contractor has enough coverage to cover any accidents that might occur during the project. Without a valid workers compensation policy, you might be on the hook for any injuries a contractor suffers on the job site, and liability coverage is essential covering any damage the crew might cause to your property. A reputable contractor should be glad to show you proof of insurance before work begins.

Increase Your Coverage Limits

If a fire breaks out or a windstorm rips off part of your roof, does your homeowner’s insurance have enough coverage to replace the property and the improvements you’ve made? If your home remodeling project might have increased the value of your property, you might also need to boost your coverage limits to protect your investments.

You should also ask your homeowner’s insurance carrier whether your policy provides protection against accidents that might occur during the renovation. For instance, what if the wood for your addition is ruined, or if a faulty power tool sparks a fire? If not, your agent might recommend purchasing a short-term builder’s risk policy that covers the cost of materials and accidental damage.
 

If you’re planning on remodeling your home in Winston-Salem, NC, trust the experienced agents at Mountcastle Insurance for unrivaled expertise, advocacy, and integrity. Since 1890, their agents have worked to protect homeowners throughout the area, offering a wide range of policies tailored to meet your needs. Visit their website for more on their homeowner’s insurance options, follow their Facebook for updates and news, and call (336) 777-8500 to request your free quote today.