Are you one of the thousands of homeowners who have plans to do renovations in your house this year? Home renovations can make the house more functional, provide you with added space, and modernize the space. For many people, home renovations are a better solution than moving to a new home, giving them a chance to create exactly what they have envisioned.
Of course, even with careful planning and all the research done, home renovations don’t always go smoothly. In fact, sometimes damage or injury can occur, resulting in unforeseen expenses. So, what happens when these incidents occur, does your home insurance cover you for damage or injury during the renovation project? Let’s take a closer look.
What the Typical Insurance Covers
When it comes to home insurance, most people are aware that it covers you in terms of theft or damage to the home, say from flooding, a bad wind storm, fire, etc. Obviously, it can save a homeowner thousands of dollars spent on repairs and can end up being the most valuable investment you’ve made. So what about damage and injury during renovations? This is where things get a bit tricky and it can be a grey area.
Rather than wait for a problem to happen and then deal with it after the fact, experts recommend that you call your insurance provider in advance and talk to them about your renovation plans. Let them know what you will be doing, and ask what sort of coverage you would have should damage or injury take place. Each insurance company will be a bit different, so it’s not something you want to make assumptions about.
When speaking with your broker, it may be necessary to purchase additional coverage during the renovation period, but that additional coverage can then give you peace of mind.
What Happens If a Contractor Is Responsible for the Damage?
Another common question about renovations is what happens if you hire a contractor and they are the ones responsible for the damage. Would your home insurance cover it? Again, this is when it’s helpful to speak to your insurance broker in advance. Typically, your standard policy won’t cover damage done by the contractor. Instead, you will want to do your research and make sure the contractor you hire has insurance to cover their business.
If the contractor is reputable, then they should have commercial general liability insurance. If damage occurs due to the contractor, you can then make a claim against their insurance policy. This article does a good job breaking down what you need to know about how home insurance and contractor insurance work when damage or injury occurs.
Always Best to Be Cautious and Ask Questions
When it comes to any sort of major renovation project in the home, whether you are doing the work or you are hiring a contractor, the best advice is to contact your insurance broker in advance and get some advice from them. Taking those extra steps to ask questions can end up saving you a lot of money and stress.