Insurance and Your Home Remodeling Project
Updated December 3, 2018 . AmFam Team
Remodeling your home is a labor of love — it's rewarding to act on your vision and add your own personality to your family’s home. And what’s even more gratifying? Enjoying the fruits of your labor and relaxing in the new and improved version of your house.
But don’t hit the hardware store or hire a crew to get to work just yet. We’ve put together a list of tips that’ll help you make your DIY plans and home insurance work together. Check them out:
Make Sure Your Remodelers Are Covered
Will you be handling this remodeling project? Are you hiring contractors to take care of it? If you’re hiring contractors, you’ll need to make sure they’re properly insured in the event of the unexpected.
Look at reviews for potential contractors. Search the web for potential contractor names and look for reviews on their work. Websites like HomeAdvisor (Opens in a new tab) have directories of professional contractors complete with reviews and pricing estimates. Selecting a reputable contractor at the beginning of your home renovation can save you plenty of headaches in the end.
Check your contractor’s insurance. If you're hiring a contractor for a large project, ask them for a copy of a certificate of insurance that lists their general liability insurance, as well as their property and workers compensation insurance. Making sure they’re covered can help you relax throughout the whole house remodeling process — if something were to happen, you’re not on the hook.
Don’t be afraid to ask your contractor about potential permits you’ll need to get for your locality before you start your remodeling.
Track the Entire Remodeling Process
Renovating your home isn’t something you should do by the seat of your pants — planning and tracking every step of your remodeling process will help you better handle the project financially and re-evaluate your insurance afterwards, too. Track your project like this:
Set a budget beforehand. Laying out what you’re planning on spending and how much you can afford for every portion of your home remodel will help you avoid expensive missteps or tough decisions later on.
Create a paper trail. Hang on to your remodeling records — bids, estimates, invoices and receipts. You'll need this documentation to update your homeowner’s policy as well as your home inventory. While not required, providing before and after pictures will help your agent update your policy faster. Plus, you’ll love comparing your remodeled home to what it used to be!
Update your inventory. Keep track of your stuff using our home inventory spreadsheet (Opens in a new tab) or another system to keep track of additional items you've purchased to fill your newly remodeled space. It’ll help out if you ever need to make a personal property claim.
Get the Right Insurance Coverage for Your Renovated Home
The insurance portion of your project shouldn’t wait until everything is finished — in fact, your insurance company should be with you almost every step of the way. Here’s how you can make sure your insurance is set up to protect everything you’re working towards with your project.
Talk to your agent before the project begins. Sharing your budget and details of your renovation can help them better craft the change in your policy that’ll come when everything’s done. Plus, they can help you protect yourself from the unexpected while the process is ongoing.
Save more. Talk to your agent about eligibility for discounts on your homeowners insurance rate due to your remodeling project. For example, you may qualify for a discount for installing smart home security and/or fire alarm systems. Or, you could get a discount if you install an impact-resistant roof. American Family rewards you for making your home safer — take those savings and make your home your favorite place to be.
Schedule a personal insurance review. When your renovation is complete, meet with your agent for a personal insurance review to update your insurance policy’s dwelling value and possessions coverage. They’ll make it a simple and straightforward process, especially if you’ve communicated with them before and during the renovations.
Consider extra coverage. Whether renovating, repairing or remodeling, you can protect your project by adding home renovation insurance coverage in case the unexpected occurs. Add up to sixty days of coverage for damage to a basement or foundation due to hydrostatic pressure, coverage for construction materials located off premises or while being transported to the premises, and theft or vandalism of personal property if you’re living away from your home during renovations.
Inspired to start a new remodeling project? Get the scoop on how we can help — or even save you money — with advice from your American Family Insurance agent (Opens in a new tab). Be sure to check with your agent to make sure that your homeowners coverage is doing all it can to protect your hard-earned dream.
Related Articles
- 9 Steps to Create a Home Inventory for Insurance Claims
Your home is more than a roof over your head. It’s where your dreams grow, your family thrives and memories are made. But the possessions you keep inside are important, too.
Whether you’re renting an apartment or own your home, you’ve most likely got an insurance policy designed to protect your dwelling and the things inside. Should the unthinkable happen and you have to use that insurance policy, it’s important to have a plan in place. And a home inventory list is a great way to get started!
We’ll walk you through how to create a home inventory so — in the event of the unexpected — you’ll be more prepared and have a streamlined recovery.
What Is a Home Inventory?
Quite simply, a home inventory is a complete list of all the items, especially valuables, in and around your home. The best home inventories include photos, descriptions and dollar values of each of your belongings. The more detail, the better! It’ll help you provide a comprehensive list to your agent of items lost in the event your home is damaged or destroyed, allowing you to get the most out of your coverage.
When your describing the items in your list, remember that the more information, the better. Here’s a quick reference list of the type of information you should include in your home inventory list:
- An in-depth description of the items. For example, rather than writing down “diamond ring,” be more descriptive, such as: “an emerald cut diamond ring, with white gold shank, accent stones and initials inscribed below the bridge.”
- Make, model, and/or serial number of the items.
- Date of purchase, receipts and photos.
- Estimated replacement cost if you bought it today. Do note that the value of the items might be different today than it was when you first bought them. This is especially true with jewelry, and other valuables.
- Appraisals at time of purchase. Especially if your items were appraised for insurance purposes.
Why Do I Need a Home Inventory?
Whether you’re a homeowner or a renter, everyone can benefit from a home inventory!
If you ever have to make a claim, a home inventory is a great asset to have, especially after stressful events like theft, storm damage or a fire (take a look at how one renter used their home inventory after facing an apartment fire).
When you make a claim, you typically submit information on everything that was lost — which can be difficult to do off the top of your head for all your possessions. Remembering to replace your TV or computer are no-brainers, but when it comes to remembering each piece of jewelry in your jewelry box, things tend to get overlooked. Having a personal property inventory will help, along with knowing how to properly insure your jewelry.
When you have your home inventory checklist, you know exactly what needs to be replaced, and you’ll have peace of mind knowing your entire household is protected.
- Reasons Why a Roof Leaks
You’re admiring the rain from the comfort of your home when you notice a sound — the unmistakable drip of water dropping onto your floor. The first and hardest step is figuring out why your roof is leaking. And with these tips, you’ll find the culprit in no time!
Here’s Why Your Roof Is Leaking
The list of reasons why your roof is leaking may seem long, but don’t worry — when it comes to finding the leak and fixing it, the finding is the hardest part. And the good thing about these problems? They can all be fixed. Check out the list and see what’s troubling your roof:
Your roof is old
Roofs don’t last forever. Protecting your home and everything inside it from the elements comes with a cost. And with all that rain, snow, ice, wind and even sunlight wearing down your roof, it becomes more susceptible to leaks. Every roof will eventually need to be replaced, so learn more about how long your roof should last based on what it’s made of.
- How to Check Your Roof for Storm Damage
There’s no good time to find out your roof needs repair — but you may be able to mitigate that pain by routinely checking your roof for damage after severe weather. Waiting for a leak or damage to present itself gives the problem time to grow and worsen.
And sometimes, you’ll be faced with expensive roof and interior damage repairs if you’re not diligent. By being proactive and checking your roof for damage after severe weather hits can help your roof — and your savings — stay healthy.
