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Home Improvement Insurance Is No Guarantee Staff - Mortgage Lenders Plus.com

Home improvement insurance isn’t a guarantee that you’ll get just what you ordered. Only your own vigilance during the improvement project can insure that. What the concept of home improvement insurance means is that you need to address the question of adequate insurance on both your part and the contractor’s part.

Your homeowners’ policy covers the replacement costs for any damage done to your home and personal possessions. It also carries the primary liability coverage you have for accidents that occur on your property. You need to make sure that your policy will provide sufficient liability protection for work-related incidents, and that your damage policy covers the value of the home once the project is completed. That is your component of a home improvement insurance policy.

Home improvements increase the value of a home. It makes sense to insure to that new, higher level while the project is underway, so that your investment in the job is covered from the start. Talk with your insurance agent about obtaining the appropriate level of coverage before the contractor begins work; obtain home improvement insurance before the home improvement is completed. You should also consider the prospect of personal property being damaged during the project, and insure accordingly.

Revisiting your liability coverage is important as well. Most policies come with a basic $100,000 in liability and $25,000 in property damage coverage; you may consider this inadequate if you are undertaking a large, invasive construction job. For a small additional premium, you can purchase a special umbrella liability policy that activates when you reach set limits on your basic homeowner's policy and provides home improvement insurance during the course of the project.

While all licensed contractors carry liability insurance, it is critical that you acquaint yourself with the extent of your contractor’s coverage. The contractor should expect questions about liability coverage and you should not be shy about asking them. Obtain written proof of their policies; if you feel it is necessary, contact their insurance agents directly.

After learning everything you can about your contractor’s coverage, ask your insurance agent what additional liability insurance might be in order for your policy in order to provide home improvement liability insurance. The contractor should have workman’s compensation insurance; ask to see proof of it. Skilled laborers are going to have disability and accident coverage, either through a union or under their contractual arrangement with the contractor. If the contractor is employing unskilled workers or day laborers, ask to see the extent of coverage that is provided for them.