Don’t forget your permit.
As a homeowner, it’s your responsibility to obtain all of the legal permits required. However, you may request that your contractor look after this on your behalf. Your contract should clearly stipulate who will obtain the necessary permits.
Vacating your home can invalidate your policy.
Unoccupied homes are more likely to be exposed to risks such as break-ins. If your home will be vacant for a long period oftime during renovations (usually longer than 30 days), request a vacancy permit from your insurer. This will allow you to maintain coverage while you’re away.
Do your homework on contractors you want to hire.
Word of mouth is the best way to find reliable contractors. Check their qualifications and ask for proof of insurance. In addition tofull liability coverage for individuals and construction materials, contractors should have workers’ compensation coverage in the event that tradespeople are injured on yourproperty. Insurance certificates should be valid for the entire renovation period.
Get it in writing and never pay cash.
A verbal agreement and handshake isn’t as reliable as a written contract. Always request written estimates detailing the work you wantcompleted, materials you want used, project start and completion dates, itemized costs, total price, and method of payment. Although it can be appealing to save a few dollars, acontractor working “off the books” may not be adequately insured, exposing you to financial risk.
Your insurance provider must be notified before you begin any renovations.
During renovations, your home can become a construction site, making it more susceptible to risks such as theft and water damage. Youmay also have a number of tradespeople working on your property. Ensure that your policy remains in effect during this time and that you have adequate insurance limits thatinclude the cost of the work being carried out.
Your home’s replacement value may be affected.
Your home insurance is designed to cover your home and its contents in the event of an insured loss. Anything that affects your home’sreplacement value – what it would cost to rebuild it with materials of the same quality,in the event that it’s destroyed – affects your premium and the amount for which you’recovered. You have a contractual obligation to report any changes made to your property– failure to do so may affect coverage, in the event of a loss.
Home insurance coverage for events such as theft, water damage and vandalism is typically limited or excluded during renovations, including do-it-yourself jobs. Speak with one of Underwriters Insurance Penticton’s knowledgeable staff about available options so that you can maintain coverage throughout this time. Contact us today!
