Many homeowners start home improvement projects in order to increase the value of their home. Even painting the kitchen cabinets or switching out hardware in the kitchen and bathrooms counts toward home improvement.
What homeowners don’t recognize is that the value of the house changes. It certainly increases with home additions in Chicago. Therefore, the insurance company needs to know, so they can adjust the insurance rates. Will a homeowners insurance policy cover a home addition?
The Unthinkable
If something happens to your house, you’ll need to know the insurance will cover repairs or rebuilding. If you didn’t notify the insurance company of home improvement projects or additions, then the policy wasn’t adjusted to cover the improvements. There won’t be enough coverage to repair or rebuild. Contact your agent as soon as you begin the project.
Liability
The contractor and any sub-contractors should have insurance to cover mishaps in construction. However, a friend or family member could be hurt during construction. Contact your insurance company; your rate may increase to cover any injury during construction.
Contents
You might have to move furnishings and other contents from rooms being renovated. Home additions in Chicago require homeowners to remove contents of rooms adjacent to the construction. This protects the contents from dust and the other construction debris. You’ll need a storage unit or a storage container in your drive. Contact your insurance company for a policy to protect the contents of the rooms.
Builders Risk
General contractors have insurance covering injuries on the job. It doesn’t protect against theft, though. Some people watch construction jobs with an eye to stealing copper piping and other materials. A builders risk policy during construction will take care of this.
Additionally, contractors aren’t responsible for damage to the structure they’re building in case of fire. If the room they’re adding catches fire, they’re only responsible for the house, not the addition. You’ll need coverage for this as well. MK Construction & Builders Inc. will tell you more about homeowners insurance when you contact them at MKConstructionInc.net.
