Homeowners planning to undertake any sort of remodeling project need to make sure they (and their contractor) are properly insured. Sometimes this just means making sure the contractor has all the necessary insurance. However, when doing major remodeling projects that involve additions to the building, personal insurance often needs to be extended too.

The best way to make sure you are insured is to contact your insurance agent and explain what remodeling you are having done. As a homeowner it is important to consult an expert and make sure that you have all the coverage you need at the best rate available. They will be able to tell you if you need to extend your liability, or simply extend your coverage to cover the increased value of your house after remodeling. Of course increasing insurance coverage will increase your premiums, but you should still do this before the remodeling project starts. This is in case the improvement is damaged before completion, because if the insurance has not already been extended then the homeowner would be expected to cover the loss. Generally when adding another structure to the house, the new addition needs to be listed as a covered item on the homeowner’s insurance policy. If you are getting a new roof or changing your windows the insurance just needs to change to incorporate the increased value of the house. It is also worth verifying with your insurance agent if your homeowners insurance covers theft of materials.

You contractor should also have insurance, in particular liability coverage and workers compensation. The liability coverage is for any damage the worker may do to your property that is unrelated to the remodel. The workers compensation is incase the contractor or an employee is injured on the site. When hiring the contractor initially, they should be able to provide an active certificate of coverage but it is always a good idea to contact the insurance agency they use, just for conformation. The homeowner should also make sure to check active certificates of coverage for any subcontractors that the general contractor brings along. This includes electricians, plumbers, painters etc.

Insurance needs to be considered and researched by any homeowner considering a home remodeling project. If something goes wrong and the project is not properly insured then, the homeowner may be on the hook for lots of money. Not the best situation when you are trying to keep a project cheap and below budget!