Personal Insurance Blog

Does Remodeling or Adding to My House Affect My Insurance?

Are you considering remodeling your home or adding an addition to your home?  If you are, you will want to speak with your insurance provider to ensure you are fully insured during construction.  It is important to factor the cost of insurance into your budget.   Many insurance companies are not comfortable insuring your home under your standard homeowner’s policy during the length of construction. 

Learn if remodeling your house changes your homeowners insurance andrew g gordon inc

During major construction in your house, carpenters, electricians, plumbers, plasterers, floorers, roofers and other contractors could be working in your home.  With so many different types of smaller jobs needed to complete the total project, the chances of a fire and/or accident happening in your home are elevated.  For example, an electrician may charge a piece of equipment overnight in the home and it could short circuit, causing a fire. 

If you do not inform the insurance company of the work being done, and there is a loss at the property, the insurance company has the right to deny the claim. 

If your insurance company is not willing to insure the home during construction, you will need to insure your home under a Builder’s Risk Policy.  This type of policy is designed to cover property in the course of construction.  It can be purchased for 3, 6, and 12 month intervals.  Coverage typically applies to personal property both on and off your land, like building supplies in transit or furniture in storage.  This type of policy uses the completed value of the home after the project is done as the limit of insurance. 

For example, if you currently insure your home for $300,000 and plan to add a $50,000 addition, the Builder's Risk policy would be written for $350,000. 

Please contact Gordon Insurance for a free Builder’s Risk quote for your upcoming project. 

INSURANCE QUESTION?

Val Feeney

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