A home renovation is exciting and fun. From tearing down those old cabinets, to dreaming about what your new space will look like. But what if that dream quickly turns into a nightmare?
That is the reality of renovation damage. This can include anything as minor as scratches to your new hardwood floors, or broken pipes and compromised structures. What happens if this damage occurs? Who pays for it?
Your homeowner’s insurance policy may be able to handle some of these snafus, but what won’t it cover?
Where to look
The most obvious place to check first is your insurance policy. You should have a physical copy of this policy stored with your important documentation. So, pull it out of the back of your filing cabinet, dust it off, and get to reading.
Additionally, you should be able to find access to your homeowner’s insurance policy on your online account.
This document should outline what is covered and what the exclusions are. The section this information can be found under is the “causes of loss” section. Most cases are usually covered but be aware of the exclusions.
Before renovation
You should call your insurance company before you lay a hammer to that wall.
Make sure you go over and updates or extra coverage that should be added to your policy. Adjust your home’s replacement cost to reflect the renovation cost. Most, if not all, coverages have a threshold.
What’s covered
The most common renovation mishaps that are covered would be:
- Fire
- Explosions
- Water damage
- Theft
- Most damage caused by a contractor
What’s not covered
There is no coverage for simply not liking how the renovation came out. If it does not damage the integrity of the home, it is a just a matter of poor-quality work. Always make sure you have done your research before hiring a contractor.
Anything that is sudden or accidental direct damage, your insurance company will cover and then seek compensation from the contractor’s insurance carrier.
Damage to neighboring property
Once again, this is all dependent on your homeowner’s insurance policy. There should be information on neighboring damage, but always call and check with your insurer first.
The good news is, if a contractor caused the damage, their insurer is liable.
The bottom line
In order to protect you and your home, and your neighbor’s home, from any renovation damage, be sure to thoroughly research a qualified and licensed contractor.
Visit our page to begin your search, today!