Insurance Considerations During a Home Renovation
Homes under renovation incur a high potential risk of loss. Whether you are remodeling your current house, home building, or considering a custom add-on, check if your homeowners insurance policy covers home renovation. Even if it does, consider the following additional coverage during the process to protect yourself fully.
Contractor’s Insurance
If you’re hiring a general contractor, remodeling contractor, or subcontractor, ask if they have liability, property, and workers’ compensation insurance. Also, request a certificate of insurance. This document contains the necessary information on types and limits of coverage, the insurance company, the policy number, and the policy’s time periods. Make copies to protect yourself and all involved in case of the unforeseen during the home building process.
Vacant Home Insurance
Are you planning to leave your home during construction? If so, consider adding vacancy insurance to your homeowners policy. Typical insurance policies do not cover fire, vandalism, liability, or other unwanted damage while you are not residing in your home. This surcharge is usually about 25% of the home's annual premium, ensuring you are covered from damage or loss.
Dwelling Under Construction Coverage
This coverage protects building materials while they are in transit or on your property. It also allows you to replace them if they are damaged, lost, or stolen at any point in the renovation process. All rate changes are only applicable while you are building the house or leaving it unoccupied. Therefore, you should remove the coverage once the contractors complete the home renovation.
Contact the professionals at Dahl Construction Co. with any additional renovation insurance questions and get started on your home building project. This trusted general contractor helps homeowners in Bayfield, Washburn, and Ashland, WI, with new construction and home improvement projects like patios, decks, and room additions. Call (715) 779-3600 to get a quote, or visit them online to learn more about their services.
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