A home remodeling project can do more than just fix your home’s structural issues and improve its looks. One of the reasons why homeowners have their homes remodeled is because it helps boost its value. Local home remodeler DreamMaker Bath & Kitchen of Southern Rhode Island shares insight on another benefit of remodeling: its potential impact on your homeowners’ insurance coverage.
The Relationship Between Remodeling and Insurance Premiums
During a remodel, your home’s rebuilding cost may increase, along with the risks associated with building projects, from property damage to injuries. From an insurer’s point of view, this can mean greater liability that increases the likelihood of a large payout in the event of a claim. Projects that involve heavy machinery, electrical wiring and construction debris are all factors that lead to such risks. Sometimes insurers end up extending the homeowner’s coverage limits and insurance premiums.
However, if the project is completed uneventfully, it can go in the opposite direction and may result in lower insurance premiums. This is because an improved home is less likely to result in an insurance claim, therefore has a lower risk of liability. An interior remodeling project that includes safety features like non-slip tiles or grab bars, for instance, can reduce the risks of slip-and-fall accidents, and the compensation claim that may arise from them.
How To Minimize Your Project’s Impact on Your Insurance Coverage
There’s no hack or trick involved here — the best way to mitigate or avoid any impact on your homeowners’ insurance coverage is to talk to your insurance provider. Basically, what they need is assurance that you are doing what you can to reduce risks of an insurance claim while your project is ongoing. You’ll be asked for documentation such as the project scope, project timeline, maybe even your remodeler’s background and insurance coverage.
The latter is particularly important because working with a properly-insured remodeler means the burden of insurance claims will be placed on the remodeler’s insurance provider. Your remodeler should have two types of coverage at a minimum: general liability coverage for accidental damage to property, and workers’ compensation for on-site injuries. During a consultation, ask your prospective remodeler for a copy of their certificate of insurance, which you should verify independently with their insurance provider.
Let’s Start a Conversation!
Looking for a “remodeling contractor near me“? DreamMaker Bath & Kitchen of Southern Rhode Island offers a wide range of professional remodeling services, including kitchen, bath and shower remodeling. To get started with a no-obligation consultation, call us at (401) 399-3917 or contact us online!
We serve homeowners Ashaway, Block Island, Bradford, Carolina, Coventry, West Greenwich, East Greenwich, Exeter, Greene, Hope Valley, Hopkinton, Jamestown, Kenyon, Newport, North Kingstown, Portsmouth, Shannock, Wakefield, Kingston, Narragansett, Warwick, Westerly, West Warwick, Wood River Junction and Wyoming.
