Studying your homeowners' insurance policy is usually not the first item on the list when you plan a home maintenance or renovation project, but this could be a costly oversight. So along with contractor quotations and hardware store shopping lists, this important document should be a priority.
According to short-term insurance broker, IntegriSure, most homeowner insurance policies only cover damage caused by sudden and unforeseen events, such as fire and floods.
Maintenance
Insurers expect homeowners to ensure that their properties are in good condition, and maintenance is regarded as the homeowner's responsibility. Any claims determined to be a result of poor maintenance or neglect are likely to lead to complications.
Many home insurance policies will have a general exclusion for incomplete, defective, or non-compliant work performed by a contractor. This would result in a homeowner being responsible for claiming costs from the contractor when your insurer turns down your claim. This means that choosing reliable building contractors is essential to ensure your insurer will honour your claim if things go wrong.
The key is to only employ reputable professionals with the necessary liability insurance in place before any work commences. Most reputable contractors will have their own liability cover, so make sure this is in place before hiring a potential contractor.
You should also ask for references from previous clients and ask to see successfully completed projects.
If you are unsure whether your chosen contractor is competent, ask your financial service provider to recommend a skilled contractor from their approved panel.
Update policy
It’s essential to update your home insurance policy and confirm your builder’s guarantee to be sure your property is covered during maintenance and renovation projects.
You must also inform your insurer of any planned changes to the building before work begins and follow up to review your policy once work has been completed.
This will ensure that your cover is adjusted to suit your specific needs and that the policy covers the newly extended section.
Writer : Sarah-Jane Meyer
