If you are considering remodeling your Southern California home you have probably given quite a bit of thought to things like design choices, colors and who will complete the work. A good question that should not be overlooked is your insurance needs throughout and after the remodeling process.
What Are My Insurance Needs Before a Home Remodel?
One of the most important insurance details to keep in mind while renovating is making certain that your coverage and limits suit your changing needs. Your homeowner’s insurance must mirror the reconstruction cost, so that you are not left with a large bill should you need to file a claim. If your remodel includes adding square footage to your home, significant upgrades to your appliances, a new roof with hail-resistant materials and several other changes, you may find that your insurance needs are no longer the same. Another issue to address is ensuring that your personal liability is covered during the renovation process. If a guest becomes injured by an element of the reno, they could pursue compensation legally. If the worst happened and you did not notify your homeowners insurance company of your renovations, your claim could be denied. By keeping your insurer in the know, you cover your potential liability. The best way to make sure you will not run into any problems is to keep your home insurance carrier notified of all renovation projects so they can help you protect your assets.
Aside from homeowners insurance, it is very important to check and double check that your contractor is fully licensed and bonded. Once you choose the right person for the job, no contracts should be signed before you have proof of licensure and bonding. This will protect you from a contractor being unable to complete the renovation, as well as any injuries that could happen on the job. An insured and bonded contractor is responsible for securing any necessary permits, which further protects you from any problems.
Will My Insurance Needs Change After a Home Remodel?
Once your remodel is complete there are a couple of steps you should take to safeguard your newly updated home. The first step would be to update your home inventory with new appliances, furniture, art, etc. If you do not already maintain a home inventory, now is the time to create one. It documents important aspects of your home, from characteristics of the home structure to your possessions. After a home remodel, update your home inventory to ensure your additions are fully accounted for. Smart home renovators keep receipts, photos and even video of completed home renovations. Another step many savvy homeowners take is to reach out to the homeowner’s insurance carrier to check that their coverage is ideal given the changes that have been made. Even things as simple as building materials can change the way your policy is written.
If you are interested in buying a home to renovate in Southern California, contact our luxury real estate experts today.
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(all data current as of 6/24/2017)
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