Things Every Homeowner Should Know About Renovation Insurance

Are you planning on renovating your home?  There is a lot more that goes into the revamping process than you may be aware of. One of the critical items to research right from the outset is the best Builder’s Risk insurance to buy.

You may be planning a small renovation like knocking down a wall. Or you could be starting a more extensive renovation such as a full apartment conversion. In either case, you must have the correct renovation insurance in place. How else will you be protected from property loss or damage?

What is renovation insurance?

When you want to make alterations to your home, build a new structure, or make renovations, there is always a risk involved.

Renovation insurance is called Builder’s Risk insurance or Course of Construction coverage. It is designed to provide coverage against losses and damage, but only until the project is completed.

Why is the right insurance important?

Even if you have Homeowners insurance, you are unlikely to be covered for home alterations.

This is where it is essential to find the best Builders Risk Insurance to buy.  Things go wrong. Accidents happen. Anyone who has every been involved in a construction project will tell you. You will need protection from damages and loss.

Is your homeowners insurance good enough?

Always discuss your renovations with your insurance provider to determine whether your alterations are considered renovations or fall under decorating. DIY projects, depending on the extent of the project, can fall under decorating and be covered under your Homeowners insurance.

So, what more do you need?

Builder’s Risk will protect your home while it is under renovation. Here are some of the specific benefits:

• Protection of tools and materials in transit to and from your property
• Coverage for scaffolding and temporary structures built on your property
• Protection against theft and vandalism
• Water damage coverage from problems with sewers and drains during renovations
• Cleaning up and removal of excess debris

Ok, so what is not covered?

• Property of others on site
• Tools and equipment, unless otherwise specified
• Professional liability
• Sub-contractors, who require their own insurance
• Accidents on site — this is a very important exclusion. Builder’s Risk does not cover any third-party liability claims.

Mistakes to Avoid

Get the best out of your insurance coverage by following these top tips:

• Make sure your contractor is insured

Even the best Builder’s Risk insurance can’t cover every aspect of your renovations.  Making sure that your contractor is appropriately insured will protect you from incomplete or defective work. This way, both you and your contractor are also better protected in case of loss or damage.

• Vacancy duration 

Some renovation insurance policies become void if you leave the house vacant for a specified amount of time. Make sure to review your policy if you plan on moving out while your renovations take place.

• Avoid denied claims

If you make a claim from your renovation insurance and don’t have enough proof to back it up, you put yourself at risk of having your claim denied.

Make sure to photograph all changes that have been made, including dates, to send through with your claim.

• Ensure all your permits are up to date

Before you get started, find out which permits are required for the work you are having done.

Any issues with permits can result in your insurance policy becoming void. Ensure that any permits you need are up to date and valid so that claims are accepted.

Best buy Builder’s Risk insurance

Each renovation project will have a different insurance premium. The cost is calculated in terms of risk factors, duration, size of the renovation, and location. But still, don’t accept the first quote you get.

There are 2 rules to getting the best deal.

1. Always check the insurance company’s credentials.
2. Always read the exclusions. Be sure that essentials have not been left out.

The coverage extensions needed for your project will also be added to your premium.  In most cases, the cost of a renovation insurance premium is between 1% to 4% of the project’s construction cost.

Contact Builder’s Risk at 877 960 0221

Now that you have your renovation plans in order, your final step is to contact your best buy Builders Risk insurance agent.

Call Builder’s Risk at 877 960 0221 today to get the policy that best fits your renovation project and budget.