Home Insurance Articles
When To Call Your Home Insurance Provider About A New Addition To The Home And Why It Is Important
2010-05-19
A home insurance policy is meant to provide financial protection to a home and a person's personal contents that are kept inside. Any damages that incur must be sudden, accidental, and unforeseen. Insurance claims can be paid in actual cash value or replacement cost. If using actual cash value, the insurance company will research similar products in the same condition and age and come up with a price that it is worth today. Replacement cost actually replaces the damaged property, materials or possessions with a new one that is similar. If a home is damaged or destroyed, insurance covers more than just the material possessions. You are also covered for additional living expenses if forced to move until your home is repaired or replaced, debris removal, credit card, debit card, and check fraud, and identity theft.
If you are doing renovations, improvements, or building any additions to your home, you should advise your insurance company before you even start construction. They will recommend that you add a construction endorsement to your policy. This will provide liability protection in the case of bodily injury or property damage while construction is being performed. Otherwise, if an accident occurs, not only can the injured party sue the builders or contractors, they can also sue you. Once the building process is finalized, you can have this endorsement removed.
Once your home addition is completely finished, you should also advise your insurance agent. When you insure your home, you want to insure it for its full value and if you suffer a total loss, you will receive this amount back. If you fail to include the home addition, you may not be covered for this additional amount. This is true both in a total and partial loss. An addition increases the value of your home. You may also want to consider adding a guaranteed replacement cost endorsement in case your home's value has been underestimated. Always keep your receipts and invoices from builders and contractors or materials if you have done the work yourself.
If you are planning on making improvements to your home or building an addition, you should consult your insurance agent before you even start. They will advise you as to what changes or endorsements you need to make to your home insurance policy. This way, you will have all of the information you require and you will not be faced with any surprises should you need to make a claim on your policy. You can also have peace of mind knowing that your property and contents are insured to full value. If any damage occurs, your new addition will be covered under your policy as well.