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Thinking of renovating your home? Does the thought of a finished basement, a new kitchen or a new addition make you excited? Your first thought might be to jump right in but don't forget to assess risks and consider your Kentucky homeowners insurance coverage before you start. You need to carefully consider what might go wrong during your projects---injuries to contractors, family members, delivery workers; even vandalism, water damage, theft or fire.  Taking the time to set up your insurance coverage correctly before you renovate is equally important as choosing the right contractor or purchasing the materials. 

Before starting your renovation: 

Require that your contractors have proof of insurance for workers compensation and liability coverages. Your insurance agent can assist you on how to do this and what to ask the contractor to provide.

If workers are hurt while on the job, workers compensation insurance will cover lost wages and pay for medical/rehabilitation costs. Those workers who are hurt in your home can sue you or claim damages from you if the contractor they work for does not have enough coverage. Your homeowners and umbrella liability policies can actually become their insurance coverage .

If you need to relocate during construction, let your agent know so you can be sure  that you have the right coverage for a temporary residence such as a rented home or hotel.

Building code upgrades and market changes may change the way in  which you should renovate your home. For example, because home alarm systems have become common, so you might want to add one during your renovations. It may bring your renovation costs up  but can make your home safer which can earn a homeowners insurance discount.  These decisions are best to make before your project begins.

During the construction: 

Because of the additional risks—such as fires, construction accidents, theft from strangers who might want to steal your belongings or your identity— you might want to think about increasing your homeowners and/or umbrella policy limits and/or changing your deductible temporarily.

When your project is finished: 

Now that you've got your renovated space, you will be eager to fill it up with new appliances, furniture, electronics and exercise equipment.  Keep your receipts along with a home inventory and make sure that you have adequate coverage in your homeowners policy for your personal property.  

Because home improvements can increase the value and replacement cost of your home, your agent can help you purchase adequate Kentucky homeowners and umbrella insurance policies.  Also, be sure to ask about guaranteed replacement cost coverage for your homeowners policy.  At Johnson & Pohlmann, we can help you be sure your home is properly insured before, during and after your home renovation project.  

 —ts2