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As spring and summer approach, many Alaskan homeowners will start planning an assortment of renovation projects to boost the look, functionality, and value of their property. But if you’re thinking about making any improvements, you’ll want to make sure your home insurance policy is updated to address any new risks—including those involving construction. To help you keep your property protected, here’s what you need to know about creating a renovation-ready homeowner’s insurance policy.

A Guide to Homeowner’s Insurance Before Renovations

What Happens If My Policy Isn’t Updated Before Renovations Begin?

While standard home insurance policies will cover a wide variety of risks—such as fire, theft, and storm damage—they generally won’t cover damages that are incurred during renovations. If property damage or injuries occur on your property without proper coverage, you may have to pay for related expenses out-of-pocket.

insuranceIt’s also important to update your policy before the work begins—not during the project. When renovations are in progress, your home insurance agency may not be able to update the policy to address the project’s specific risks.

When you review your policy before a project begins, you can add temporary protection—such as builder’s risk or course of construction coverage—to your existing plan. These add-ons can cover a variety of unique renovation risks—such as damaged or stolen building materials and guest injuries in construction zones.

Will My Policy Dictate Who Performs the Work?

Another reason to review your policy before renovating is to find out if your provider has any requirements as to who should perform the work. If your home improvement project involves complicated or dangerous tasks, they will likely require you to hire a qualified, licensed contractor to perform the work. If you don’t abide by these requirements, you may still be held liable for any damages that occur during the project.

Should I Review My Coverage After Projects Are Complete?

Depending on the specific renovations, you may or may not need to update your home insurance policy after a project is complete. For example, new structures—such as decks, swimming pools, or room additions—likely won’t be covered in your previous plan.

Some improvements may also help lower your insurance premiums by reducing property risks. Replacing old plumbing, for instance, can lower the likelihood of water damage, while new electrical wiring can lower your overall risk of fire.

 

 

Not all renovation projects involve the same level of risk, so it’s important to discuss your specific needs with a trusted home insurance specialist—such as those at Dunlap Agency in Fairbanks, AK. Serving property owners throughout Alaska, this insurance agency will review your plans in-depth to make sure you have optimal coverage during and after project completion. In addition to perfecting your plan, these professionals will also compare rates and providers to help you secure the most affordable rates. To learn more about their capabilities and coverage options, visit this agency online. If you’d like to receive a free quote, call (907) 456-5202.

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