Home ownership is no joke. It is part dream, part responsibility and part reward to take that giant step from renting to buying. You should always do your homework before buying a home to make sure it fits your needs and budget. The chances are that you'll want to make some improvements to your home at some point, whether you built it or bought it.
Many homeowners are choosing to take on DIY (do-it-yourself) projects due to the availability of so much online information. Prior to starting the remodeling project, there are several things you need to think about: Which room will be remodeled? What will the cost be? Can it be done in a reasonable amount of time? The equipment and materials you need can you store? It may turn out the DIY project needs to be handled by a professional after all, once you've answered all those questions. Selecting a professional contractor requires that the contractor be insured.
Check with them if they have the appropriate insurance so that you are also protected. To make sure they have workers' compensation and general liability coverage, see their Certificate of Insurance. It's important to know if you are covered if your contractor is injured on the job or if the dishwasher starts leaking.
The value of your home is crucial when determining how much coverage is required. The value of your home to your insurance policy will increase based on the improvement(s) you make, regardless of whether you are building an addition or just remodeling your kitchen. Increasing your insurance coverage also means boosting the amount you pay. Underinsured exposures can be expensive and it's risky to be short-changed if something goes wrong during construction or after the job is finished. You often end up with more complicated projects than you expected
Be sure to do your research and speak to any agents you may know before pulling the trigger on a major DIY project or home improvement. The kinds of things you're going to want to know are as follows:
- Will the remodel time be so long that you might have to temporarily relocate? Staying with friends or family isn't always an option and hotels can get very pricy when it comes to extended stay.
- Where will you store all of the remodel components and equipment? Do you have room in a garage or would you need to purchase alternate storage?
- Ask about the cost and risks involved with transporting costly materials yourself. Are you protected by your own auto policy in the case of an accident?
- What if there's damage to your property during the remodel and you need to start from scratch?
These are just some of the things for which your insurance agent can make sure you have the right coverage. The best thing that you can do is get ahead of the game by staying informed and being prepared for any and every. potential problem that can occur.