What The Remodeling Process Means To Your Insurance

What The Remodeling Process Means To Your Insurance

| July 10, 2019

If you plan to remodel your home, make sure that the house, the contractor and the subcontractors have adequate insurance coverage.

Don't make the mistake of waiting until an addition or extra room is completed to increase the insurance coverage on the structure of your home. If the new addition is destroyed or damaged before insurance coverage has been increased, you may be responsible for the cost of repairing or rebuilding the addition.

Be sure to contact our office before, or shortly after, construction begins in order to increase the insurance coverage on your house to an amount that reflects the higher value of the rebuilt structure.

When hiring a general contractor, request a certificate of insurance for the contractor’s general liability and workers
compensation policies. Workers compensation pays for medical and rehabilitation expenses and covers lost wages if the workers sustain injuries on the job. Injured workers may sue you if the contractor does not have proper insurance.

In most home improvement projects, the contractor subcontracts the builders, electricians and plumbers. The workers hired may not be full-time employees of the contractor and therefore not covered under the contractor's workers compensation policy. While some independent builders, electricians and plumbers may carry their own workers compensation coverage, others may not.

You should verify the insurance coverage of the contractor and the subcontractors. If the coverage is insufficient, you may want to get a few other bids to find a contractor with adequate coverage.

If you purchase additional items, such as furniture, exercise equipment or electronics, be sure to keep receipts and add them to your home inventory checklist.

If you plan to remodel your home and have any questions regarding your insurance limits, give us a call in either our Mission Viejo Office (949)582-5220 or Tustin Office (714)505-5310 - we’re here to help!