3 Mistakes Homeowner's Make When Updating Their Home


Have you ever updated or renovated your home without reviewing your insurance? Big mistake! While many of us often invest in increasing the value of our home by remodeling, we tend to forget that the cost to rebuild has increased too. That’s why it’s important to make sure you avoid these 3 mistakes when updating your property:


Hiring a General Contractor? It’s in your best interest to make sure they are licensed and have adequate insurance. You can do this by requesting a certificate of insurance, which should include general liability and workers compensation coverage for any employees. The General Contractor is responsible for property damage, injuries and negligence in workmanship which will be covered under these policies. If there are subcontractors involved, you will want to make sure they have their own coverage too. You could be held liable for injuries or damages if the General Contractor you hired is under or uninsured.


There are many scenarios in which changes to your home may warrant an increase in coverage. For example; extending the property, kitchen renovations, a new pool, a new roof, etc. All of these types of updates will increase the replacement cost of your property, so your current limits may be inadequate if you suffer a loss. Make sure to update your policy to reflect any new additions, whether it be items or structures. This will give you peace of mind that your home will be rebuilt or repaired with the same workmanship, design, and materials used during renovations.


If you are making any changes to your home, you should always notify your agent or broker. An experienced insurance professional can help to determine where coverage needs to be changed, and can even identify new discounts you may be eligible for. Some companies do not offer coverage for a property insured under a regular homeowner’s policy that will be undergoing larger projects or renovations. You may need to be moved to a new insurance program, such as a Builder’s Risk Policy, to guarantee there are no gaps in coverage while your home is under renovation. Not all homeowners are insurance experts, so make sure you consult your broker for the best advice!


Taking care of your home is a tedious, full-time job.  So, before you make any changes or updates, make sure you review your homeowners insurance and consider the above.

Opinions expressed in this article are solely the author’s opinion, not intended to provide the reader with legal or any other professional advice. Should you need advice or opinion, consult with a qualified professional to address your specific needs.