Who's Responsible? Insurance Coverage and Liability Basics to Know Before You Start a Home Exterior Remodeling Project

It’s logical to think about contacting your insurance company after you’ve made an improvement such as exterior upgrades. You’ve increased the value of your home, and that value has to be reflected in your policy.

The right time to get in touch with your insurance agent is before the work gets underway. Here’s why.

Prep work

Insurance is all about protecting against “who could have imagined that?” unexpected things. Reputable contractors bring along their history of safe, accident-free work, but none of us have a similar arrangement with Mother Nature.

Your homeowner policy covers and protects only what the insurance company knows about. If severe weather or some other event causes damage before completion, you may discover it’s your responsibility to cover the additional costs.

Insurance is a highly regulated industry. Each company works within them differently, so it’s advisable to contact your insurance agent to find out how they approach coverage during the construction period.

We’ll be asking about this, too. Your insurance company may have requests we’ll work with you to provide. Here’s an example. Some insurance companies incrementally increase coverage as the construction project progresses. We’ll help you with this reporting.

What about your contractor?

All contractors should have sufficient insurance coverage for their workers and their business. All it takes is some desktop software to produce a nice brochure reassuring clients that they’re covered. Go a bit further.

This is a time when you’re probably more concerned about the budget of your exterior remodeling project. But it takes just a few minutes to satisfy thatyour contractor has appropriate general liability insurance for themselves and their workers. They should be happy to know you want to review this information. It shows you’re committed to a safe project.

Part of the budget

Again, each insurance company has their own procedures. As your project partner, a contractor has to know how they can help you meet these procedures.

This can include additional temporary policies. Here’s the most common example.

  • Your insurance company may recommend that you buy a builder’s risk policy. It’s a temporary policy that covers the theft of construction equipment or materials from your property during the project.

The cost of insurance protection during your exterior remodeling construction project isn’t going to be a budget-busting line item, but we want to make sure you’re aware of these considerations. Your home is often one of the most valuable investments you make. Adequate insurance protects it.

Both you and your contractor have responsibilities to ensure that this protection isn’t put in jeopardy during the construction project.

Of course we’re licensed, insured, and bonded. That shouldn’t impress you. What will is our approach to keeping insurance coverage a “who could have imagined that?” part of the equation. Talk to us about how we take extra steps to safely and efficiently transform your home’s exterior.