are many topics more exciting than homeowners insurance,
I’ll grant you that. But since your house is likely to
be your biggest asset, it’s wise to periodically
examine coverage, to ensure that you’re adequately
covered against damage and liability.
is especially important if you’re planning a major
project, such as remodeling, rebuilding or building new.
you hire a contractor to work on your home or property,
take time to verify that they and any subcontractors are
appropriately insured, as well as licensed and bonded.
While it’s a good idea to ask for a contractor’s
certificates of insurance, an even better practice —
because certificates can be faked or altered — is to
contact the insurers to confirm coverage. Some experts
recommend that contractors carry at least $1 million in
coverage for each insurance type.
highly rated insurance providers tell us that you should
consider an extra step: Get yourself named as an
"additional insured" on the contractor’s
general liability policy. This ensures you’re fully
covered against liability for damage that can occur
during your project, such as workers breaking a water
line that causes a neighbor’s property to flood.
Getting yourself added to the policy may cost you little
or nothing. Also, it means the insurer will alert you if
the contractor’s policy lapses.
important to realize that some home improvements can
affect your homeowners insurance premium or coverage.
For example, a major kitchen remodel could mean that
your home would cost more to replace in case of
disaster. Many policies include a replacement cost
endorsement that guarantees sufficient coverage to
rebuild your home. It’s a good idea to periodically
review your homeowners coverage, to be sure you have
replacement coverage and that the amount is in line with
renovation-related insurance consideration arises if you
transform an unused room into a home office. Standard
policies rarely extend coverage for accidents, theft or
other hazards that can happen on property used for
business. If this is a concern, talk to your insurance
company about extending coverage or buying a separate
important to inform your agent or insurer when you make
significant changes to your home. Building a pool, for
example, is likely to raise your insurance rates because
it probably will increase your liability risk as well as
your home’s replacement cost. However, some upgrades
might reduce premiums. This can happen if you improve an
older home’s wiring, roofing or plumbing.
typical homeowners insurance policy is not sufficient to
cover risks associated with building or rebuilding a
home. Top-rated insurance experts recommend that you
take out a builder’s risk policy to insure your
property and on-site building materials during
instance, if half of your house was destroyed, a typical
homeowner policy will cover the intact half and a
builder’s risk policy would cover what’s being
rebuilt. Agents will base the builder’s risk policy
cost on building plans and estimated construction costs.
you’re in the market for home-related insurance, be
sure to get quotes from several companies that have good
ratings from both consumers and from independent rating