When you’re remodeling your home, there are various things to consider. First, changes to the home might affect your homeowner insurance and could create a future problem if the insurance company is not notified. Your policy should reflect the full cost to rebuild your home; you would want to fully protect your asset. When working with a general contractor (GC) be certain that the GC is fully insured.
Part II – Renovation / COI
So, okay…I have a contractor. Now what?
Well, your contractor should be insured. This normally takes the form of a Certificate of Insurance (COI). You should consider a written agreement between you and the contractor which not only establishes the work to be done, but also lays out his insurance and liability.
Here is a little-known fact: In some states an injured worker could actually sue the homeowner for injuries beyond what workers comp would cover.
Part III – Renovation / Rental
My renovation has forced me out of the house while the project is underway.
If you are renting living quarters elsewhere, you should consider renter’s insurance to protect your property and liability exposure at this new location.