A Guide to Understand Home Insurance While Renovating
In the state of Massachusetts, people pay an average amount of $2,102 per month on the cost of homeownership, and owners occupy more than 62% of homes. With such high costs of homeownership, it is paramount to have a home insurance policy you can rely on. Although Massachusetts insurance does not make it mandatory to have home insurance, it is prudent to do so. This will protect the investment you have made in your home.
When you are planning to renovate, it will require a lot of your time, effort, and money before you see the results materialize. But the last thing you want on your mind when renovating your home is how it will impact your home insurance.
Here are some home insurance questions to guide you when renovating.
Should I Inform The Insurer About My Plans?
Once you decide to renovate your home, the first thing is informing your insurance company about the plans. This is essential because, after renovation, the value of your property is likely to go up. The current policy may not be enough to cover any damage to the property.
What Is Covered Under My Home Insurance Plan?
Most standard home insurance plans will protect your home from fire, windstorm, hail, lightning, and other such weather-related damage. The Massachusetts insurance regulations also allow you to add features such as personal injury, personal liability, theft, etc., to get added protection. Many homes in the state are more than five decades old and in proximity to the cost. This increases the premium rates, as well. So, don’t forget to ask your insurer about the rates along with the policy coverage.
Are Materials Covered Under Insurance?
Most home insurance policies don’t cover materials used in renovations. So, the tools, paint, wood, and other materials that you use will not be covered under your policy.
Should the Contractor Be Insured?
If you are getting a contractor to do your renovation for you, then it is best to check if they have insurance. Check for both liability insurance and workers’ compensation. This will help reduce your risk further in case of injury to any worker.
Do You Need Extra Liability Cover?
Yes. You need to get extra liability coverage to protect you from liabilities such as injury to a friend or worker on your property while renovating. Because renovation is a lengthy process, the risk of someone getting hurt in the house during the process is higher, and extra liability cover will protect you from such unexpected events.
Does DIY Renovation Need Extra Cover?
If you are planning to renovate yourself, make sure to inform your insurance provider about it. Because you will need to get extra cover as there is still a possibility of either you or those helping will get hurt during the renovation. Considering no-fault medical protection is a good idea as it ensures that all medical bills are sent directly to the insurance provider.
I’m moving Out While Renovating. Will I Get Coverage?
Many insurance policies have conditions that do not protect the property if it is vacant for a certain period. So, if you are moving out of the house during the renovation process, then inform your provider first and ensure that you get a vacant home insurance cover in place.
Should I Maintain Records of Before and After Renovation?
Yes, it is best to maintain pictures before you begin the renovation process and after it. These will act as proof of the condition of the property before any damage was caused to it.
Renovations almost always add value to your home, and it is best to update your current home insurance policy to protect the additional value. You also need protection from any liabilities arising during the renovation itself. So, make sure that your contact your insurance company about your plans and get additional coverage.