RENOVATION INSURANCE: Keeping Things Covered

2007-03-28 16:27:23

( Insurance )



The first thing you need to be aware of when it comes to renovation insurance is that you are responsible for the security of your home. Keep in mind that it is still your duty as the owner to protect your property from theft and damage caused by exposure to the elements. Building and contents insurance usually doesn’t cover storm water damage to properties.

Make sure that you contact or notify your renovation insurance agency before you start hammering and repainting your house. Failure to do so may cause problems if you try to make claims later on. Also, find out if your contractor or builder has enough buildings insurance to cover the damage to your house during construction.

Your renovation insurance agency may reduce or even cancel your payout if you knowingly hire unlicensed builders to do the job. So while they may seemingly charge less, unlicensed builders may actually cost you more in the long run.

Renovation insurance also comes in handy when you are planning to get a loan for your renovation. Lenders generally look for a building and contents insurance certificate before releasing any funds. Some loan companies even require to be noted as interested parties on your buildings insurance policy.

The value of your house generally increases after you’ve done your renovation. So remember to reassess the value of your property after renovation and adjust your buildings insurance coverage accordingly. The last thing you want is for your newly-renovated home to end up underinsured.

Your building and contents insurance policy should be clear about the events and items that it covers. It is expected that an insurance policy with a wider coverage is more expensive.

A practical buildings and contents insurance policy is one that covers a list of events and items specifically and in detail. Flooding, storm damage, tidal waves, acts of terrorism, and tree root damage are commonly excluded in insurance policies.


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