Home Improvement Projects: Are You Properly Insured?

Summer in Florida is prime time for home improvement projects. Whether you're repainting your home's exterior, replacing the roof, adding on, or constructing a new patio, a home improvement project can not only beautify your home and add to its overall comfort, but also significantly increase its value. Don't undermine your considerable efforts by failing to get the proper insurance, or you may end up having to fork out much more than you planned in the event of an accident.

Check Your Existing Policy

Do You Have Enough Coverage?

Take a look at your homeowner's insurance policy to decide whether you need to increase your coverage. Make sure that your policy will cover the cost of repairs and/or rebuilding in the event that your home is damaged during any improvement projects.

Do You Have Sufficient Liability Coverage?

Most homeowners' insurance policies provide $100,000 in liability coverage and $25,000 in property damage coverage. You may want to increase this coverage, or consider purchasing umbrella insurance that will kick in to cover what your current homeowners' insurance policy does not. Talk to your insurance provider about whether either of these options is right for you.

Will Increasing Your Home's Value Also Increase Your Premiums?

There's a good chance of this happening, so talk with your insurance provider about it before beginning a home improvement project. It's good to know ahead of time if you can expect an increase in your premiums as a consequence of your beautified home.

Check Your Contractor's Insurance

Always make certain that your contractor has the right types of insurance policies in place before beginning any work on your home. You have the right to ask for written proof of your contractor's insurance policy, and to contact his or her insurance provider directly should you have any questions or doubts.

Workers' Compensation Insurance for Contractors

Many contractors have employees, and those that do should also have Workers' Compensation in place. This type of insurance will protect your pocketbook should any of them become injured while working on your home improvement project. Without it, it could be you who ends up paying for their medical bills, lost wages, and more.

Liability Insurance for Contractors

Liability insurance is a must for contractors who do not have employees and therefore cannot purchase Workers' Compensation insurance. Such contractors may hire independent subcontractors to complete portions of your home improvement project. Your contractor must have liability insurance in place in order to protect you if your property is damaged or if any of the subcontractors become injured on the job.

Warranty Protection

Verify that your contractor offers a warranty on the work he or she does on your home. Typically, a contractor can provide you with a written warranty promising that either the contractor or his or her insurance will back the workmanship and materials that went into your home improvement project for at least one year.

Contact Post Insurance and Financial today to discuss coverage before you start your next home improvement project.