Updating Your Home? Review Insurance First!

If you own a home and plan some renovations, don’t assume your homeowner’s policy will be effective while you are renovating the structure. Homeowners insurance covers you while you are living in the home. If you change the use of that home, then your insurance needs to change. Be careful! Your policy could be canceled or worse yet, if you have an incident, damages or a liability issue, your Insurance company could deny your claim as usage of the home changed and you failed to notify them. So, if the use of the structure changes,or you move out, put the home on the market for sale or if the home becomes vacant, rented out or used for business, any of these things can change your policy.

Anything that changes the way you use your home, then your HOMEOWNERS Policy could be canceled. Don’t wait till a problem develops, get the facts now. If you are renovating your home, speak with your agent, all renovations are different, again they can affect your home policy. Call us at 732-295-5584 to discuss your situation. General rule, if you’re adding a room, raising your home or replacing walls then a Builder Risk policy could be needed. Home renovations can be costly, but the wrong or insufficient insurance policy could cost you a fortune. Some facts to remember.

    1. If you hired a contractor, get his insurance declaration page, make phone calls and inquire if his insurance is current and in                    effect. Workers’ compensation- Liability insurance  proof should be mantatory. Require certificates and confirm                                   coverage before you sign any contract.

    2. If subcontractors are used, verify their coverage, Or are they covered by the contractors insurance? If you use a General                         Contractor, he may not cover the sub contracotrs, we see this all the time, and when things go wrong it could cost you big. 

    3. Work all done? Don’t forget to Increase the homes replacement value. Improvements can enhance the value of your home. 

    4. Don’t forget to include new items. New appliances and furniture purchases need to be updated on your policy. 

    5.  Raise the liability coverage limit. Check to see if your company will cover you during construction, think about increasing coverage in               the event of an injury while the property is under construction. Another factor, things like pools and trampolins. Failure to notify your                    company about them might pose risk to children.Should an accident involving an your pool hot tub, trampolin or what we call an                         attractive nuisance happen, you’d be liable — whether or not you gave permission to use it.

         Additional liability protection can help ease that burden.

In summary, Insurance needs to change as situations and conditions change, talk to the Insurance professions at I & E Insurance to make sure you are properly covered. Its too late after a claim, call us at 732-295-5584 today!