Understanding how insurance can protect you during construction and repairs can really help you avoid disaster. Here are some of the many ways a property policy keeps you protected during projects.
Covers Your Building Materials
If you are doing the work on your own, you need to consider how the materials that you are using are covered. If the materials are permanently attached to the structure, they are considered part of the dwelling. If they have not yet been fixed, they will be considered Personal Property cover. Review your limits, and decide if you need to raise the limits prior to buying the materials you will need. They will be protected against fire, theft, vandalism and other listed exposures.
Covers Liability Exposures
When you are doing work on a property, there are more liability risks as the work commences. You may need to dig holes, store beams outside of the home, and leave equipment out all day long. If a guest or another party trips and falls and tries to sue you for damages, you need to ensure your home coverage will protect you. Your personal liability cover will pay to defend you in court and for the medical bills of the claimant if their claim is deemed valid.
Protects A Helper
If you have a friend who is nice enough to help you with the heavy-lifting, you need to be sure that that friend is protected. Real friends will not sue you when they suffer a minor or moderate injury, but they will need help covering medical bills. Your Medical Payments to Others coverage will pay for these bills up to the limit stated on your policy. Raise this limit prior to breaking ground.
Damage Caused As the Home is Under Construction
According to brokers at Underwriters Insurance Brokers (BC) Ltd., a firm selling home insurance in Vancouver, a major reason for claim denials in this industry is intentional damage. If you are doing a project and rain damage is sustained because you failed to cover a hole properly, this is not considered intentional. Anything that is accidental and caused by a covered peril will be covered by your insurer.
Doing your renovation on your own can save you money, but learn about how your insurance pays in the event of a claim. Contractors have their own coverage for employees and liability risks. Meet with your agent, talk about your concerns, and get the peace of mind you need.
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