Home remodels are exciting and fraught with both problems and rewards. Homeowners can’t wait to see their “brand-new” home. Alternatively, homeowners often don’t think of the insurance side of the equation. Will their exciting and new home remodeling in Lincolnwood be covered under homeowner’s insurance? What kind of charges will a remodel incur? How do homeowners find out more about this necessary topic?
What Insurance Covers
Homeowner’s insurance covers a structure and its contents. Clauses are built into the policy to cover natural disasters, like a hurricane, flood, theft, and vandalism. This is if the homeowner occupies the house. If for some reason he doesn’t, such as in the case of a month-long vacation, then a rider is attached to the policy covering the contingency.
Don’t Contractors Have Insurance?
Yes, but only for the contractor’s work. If a contractor inadvertently caused damage to the dwelling, his insurance would cover it. If someone was injured due to an accident, then his insurance would cover it. Lawsuits are figured into his insurance as well.
What Insurance Is Necessary for a Remodel?
The purpose of updating the insurance is to include the home’s increased value in the policy. If the home will be gutted during home remodeling in Lincolnwood, it will be basically rebuilt to include upgrades.
Obviously, the homeowner won’t be there. This leaves the home open to vandalism or theft. The policy would be altered to cover this.
Credit for discounts, like whole-house generators and security alarms, will be added to the policy while the renovation is going on.
A renovation and construction charge will be added to the policy. This is usually 35 percent of the home’s yearly insurance premium after the credits and discounts. A vacancy charge will also be added to the tune of 25 percent of the yearly premium.
Be sure to consult your insurance agent before contacting to learn more.
