Remodeling a home, whether it is a big project or a small one, can be a significant task. There are many issues to consider, not the least of which is your New Jersey homeowners insurance. With improvements to your home, you will need to make improvements in your homeowners insurance policy.
Here are the steps you need to take concerning your policy when you are considering remodeling your home.
Review Your Policy First
The first thing you will want to do before you get started on your remodeling project is to review your existing policy to see just where you stand. You will want to look at the following:
- Amount of total coverage on home
- Coverage for yourself while remodeling
- Liability coverage while remodeling
You will want to know how much liability coverage you have for a contractor working on your home. This is to help defray medical or other costs that may occur if there is an accident and the contractor does not have his own insurance. If you plan on doing the remodeling yourself, make sure you have coverage for medical expenses for yourself and whoever else helps you remodel in case someone is injured.
Finally, you will want to know the total insurance coverage you have on your home so you can compare it against a new appraisal of your home after remodeling. This will help make sure you get the amount of coverage you need.
Hiring the Right Contractor
If you are planning on hiring a contractor to remodel your home, there are many things you will need to consider in order to get the right person or company for the job. When it comes to homeowners insurance, though, you will need to focus on one main thing: does the contractor have insurance.
You may or may not have coverage under your present policy for your contractor, but you should find a contractor that has his/her own insurance. The contractor must have workers compensation coverage and contractor’s liability coverage to cover injuries to his employees and damage to your property.
Doing it Yourself
If you are planning on remodeling your home yourself, you still need to make some inquiries into your policy. You will want to check your policy to see what coverage may exist for if you are injured. However, a health insurance policy will probably cover you in this regard.
The biggest concern will be for those who may be assisting you. Make sure your policy has liability coverage for those working on the home with you. If the coverage doesn’t exist or you feel it inadequate, then you may want to consider purchasing a temporary personal umbrella policy to protect your finances and assets while remodeling.
Record Improvements with Your Insurance Company
Once you have completed the remodeling project it is time to make adjustments to your New Jersey homeowners insurance policy. Your first order of business will be to get a home appraisal that will reflect the new value of your home. You can use this appraisal to determine if your current coverage is enough for your remodeled home.
You will also want to report to the homeowners insurance company the improvements you have made. This is especially important if you have added other structures to your property such as a garage.
Get Rate Quotes on Your Remodeled Home
Now that you have made improvements to your home, it is time to improve your New Jersey homeowners insurance. Once you have reported the changes you made to your homeowners insurance company, you can check the new rates against other companies with online rate quotes. It will only take you a few minutes to get online rate quotes for your newly remodeled home. With your changing needs, you may find that a different New Jersey homeowners insurance company can offer you a better price and/or better coverage.